(Bloomberg) -- Apollo Global Management Inc. is changing the way it compensates top managers, eliminating carried interest for some of its key executives in favor of bigger stock awards and implementing new rewards to help retain employees.

Co-Presidents Scott Kleinman and Jim Zelter will potentially receive stock awards worth more than a combined $800 million, depending on the New York-based firm reaching certain financial goals, according to a regulatory filing on Thursday. 

About 100 of Apollo’s senior leaders will get long-term stock based awards and the company will incur a one-time non-cash charge of $1.1 billion in the fourth quarter.

None of its top three executives, including Chief Executive Officer Marc Rowan, will receive carried interest generated from investments going forward.

Kleinman and Zelter will forfeit unvested carried interest, and will each receive 1 million new shares annually over five years, with an additional 1 million shares tied to incentive targets. The total value of their stock awards would exceed $430 million each if their targets are met, based on Apollo’s current share price. 

Apollo has pledged to double assets under management, currently $481 billion, and fee-related earnings over that time frame.

Other executives are also being offered the option to forfeit their existing carried interest in exchange for long-term equity awards.

Rowan, who’s worth $6.3 billion, owns a stake in Apollo worth $2.5 billion, according to the Bloomberg Billionaires Index. He won’t receive any additional stock awards as part of the changes, which includes extending his employment agreement by two years, taking him through 2023.

While parts of the firm are shifting to a share-based incentive structure, those working directly on private equity deal-making will see their share of carried interest, or the cut of profit on deals, go up.

Apollo is seeking to shift to more shareholder-friendly practices under Rowan’s leadership, including ditching super-voting shares for executives so that each investor has a single vote. It has expanded its board to include a new independent director and ensure two-thirds of directors would be independent. Apollo struck a deal this year to merge with Athene Holding Ltd. in a bid to simplify the structure of the two firms. 

Rowan took over as CEO after co-founder Leon Black, stepped down after a months-long controversy over ties to Jeffrey Epstein made his position untenable. 

Rowan told shareholders at Apollo’s annual meeting that compensation across the firm would face a “fundamental reset.” In addition to the share-based compensation, the firm is also introducing a supplemental annual cash stipend of $250,000 for its partners and some executives.

“The result of that is better alignment between employees, shareholders and clients,” he said in October. “We are taking these steps intentionally to set us up for long-term success and growth.”

(Updates with Rowan employment agreement in eighth paragraph)

©2021 Bloomberg L.P.