(Bloomberg) -- Apollo Global Management Inc. will revamp its compensation structure to better align pay with performance.
The private equity firm plans to award employees long-term stock options and replace its profit-sharing program with Apollo shares, Chief Financial Officer Martin Kelly said Tuesday in a presentation in New York. Kelly called the plans a compensation reset.
Apollo also intends to give more carried interest, or the cut of profit on deals, to its investment professionals, he said. Partners of the New York-based company will receive a long-term award of Apollo shares, according to an investor presentation issued Tuesday.
The changes are expected to lower Apollo’s compensation expense ratio, the firm said.
Apollo shares rose 8.5% at 1:30 p.m. in New York trading, the biggest gain since April 2020.
©2021 Bloomberg L.P.
Advertisement