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 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.
