Blackstone Inc. CEO Steve Schwarzman took home over $1 billion in compensation and dividends in 2024, highlighting the billionaire’s wealth as Washington debates the taxation of private equity profits.
Schwarzman’s Massive Earnings Breakdown
The bulk of Schwarzman’s earnings came from dividends, rather than fund profits. As the largest shareholder of Blackstone (NYSE: BX), he holds nearly 20% of the world’s biggest alternative asset manager, a stake worth approximately $37 billion, according to the company’s annual filing.
His 2024 earnings increased by 11.5% compared to 2023, largely due to $916 million in dividend payouts. Despite handing over daily operations to President Jon Gray, Schwarzman’s wealth remains deeply tied to Blackstone’s stock performance.
In addition to dividends, Schwarzman received $83.7 million from carried interest and incentive fees, significantly exceeding his $350,000 salary. With an estimated net worth of $51.3 billion, Schwarzman remains one of Wall Street’s highest-paid CEOs, per the Bloomberg Billionaires Index.
Tax Policy in Focus: Carried Interest Under Fire
The carried interest tax loophole, which allows private equity executives to pay lower taxes on investment gains, has come under renewed scrutiny. Former President Donald Trump has pledged to eliminate this tax break, which critics argue unfairly benefits billionaires.
Schwarzman, a high-profile Republican donor, has consistently defended carried interest, while his name adorns prestigious institutions like the New York Public Library and MIT Schwarzman College of Computing.
Blackstone’s Growth & Gray’s Rising Influence
Blackstone now manages a staggering $1.1 trillion in assets, making it the largest commercial real estate manager and a dominant force in private credit and buyouts. Despite market challenges, fee-based earnings and asset sales grew in 2024.
Jon Gray, Blackstone’s president and heir apparent, earned $247 million last year, including $44 million in incentive fees and $169.7 million in dividends. At 55, Gray has steered Blackstone toward tech-focused investments, data centers, and insurance-backed financing, broadening the firm’s reach beyond traditional buyouts.
Private Equity’s Shifting Landscape
As private equity evolves, top firms are no longer run by their founders but by corporate executives who drive institutional growth and retail expansion. However, with private equity exits and IPO activity rebounding, expectations for 2025 profits are rising.
A Blackstone spokesperson reaffirmed the firm’s performance-driven compensation structure, emphasizing long-term alignment with investors.
