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Reading Blackstone's Tea Leaves
Photograph of Steve Schwarzman by Mat Szwajkos/Getty Images
As Blackstone prepares to go public, the latest financial disclosures released today reveal how co-founders Steve Schwarzman and Pete Peterson plan on collecting their prize money:
Whereas Schwarzman will retain a 23 percent interest and draw only $449.2 million in cash up-front, Peterson is planning to take $1.88 billion now and reduce his ownership in the public company to 4 percent.
Should we be worried? Peterson's decision to take the money and run suggests either a burning need for personal liquidity or a belief that the company's I.P.O. -- expected at $30 a share -- will be the most lucrative price to at which to cash out.
Maybe Peterson's not willing to stick around for what the Wall Street Journal calls "significant losses" predicted by Blackstone for the years to come due to ... well ... compensation costs.
by Liz Gunnison
Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.
