Private Equity

Carlyle revamps pay structure while setting new financial targets

The alternative asset manager swung to a fourth-quarter loss on a charge tied to rolling out a new compensation plan

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Carlyle CEO Harvey Schwartz said senior professionals at his company wanted their compensation more tightly tied to performance. Photo: Nathan Howard/Getty Images

Carlyle Group swung to quarterly loss but saw its stock price rise after it unveiled a pay overhaul that will give investors a bigger piece of management fees and set new performance targets for the coming year.

The private equity firm also reported a higher profit margin on fees, and its profit that can be returned to shareholders beat analyst expectations.

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