Fortress Investment Group LLC paid its three top executives bonuses worth a combined $43.8 million last year as the company’s shares fell 31 percent, including reinvested dividends.
Co-Chairmen Peter Briger and Wesley Edens received $22.6 million and $12.7 million, respectively, under the firm’s principal compensation plan, the bulk of it paid out in cash and the remainder in restricted stock, according to a Friday proxy statement. Chief Executive Officer Randal Nardone’s bonus for the year was $8.5 million. It’s the largest bonuses for Edens and Nardone since the New York-based firm went public in 2007.
The firm, which oversaw $70.5 billion in fee-paying investor capital at the end of last year, disbanded its flagship macro hedge fund after almost two years of losses and a spate of redemptions since 2007 shrank its assets by more than three-quarters to $1.8 billion.
Fortress’s largest private equity fund, overseen by Edens, was producing a 7 percent annualized return as of the end of 2015, compared with 6.2 percent a year earlier and 4.1 percent at the end of 2013, according to the firm’s annual report. The fund managed $4.4 billion as of Dec. 31.
Briger’s main credit hedge fund, called Drawbridge Special Opportunities, generated a 5.8 percent return for 2015, compared with 10 percent the previous year and 19 percent in 2013. The pool had $4.3 billion in assets as of Dec. 31. Returns weren’t available for the most recent private equity-style credit fund he oversees, which started last year, because it’s too early in its investment period, according to the report.
Fortress generated $391 million in pretax distributable earnings last year, down 12 percent from 2014.
In addition to $200,000 salaries, Briger and Edens also received company-paid Internet security services in the amounts of $291,424 and $341,058. At least half of the cash portion of any bonus payments net of taxes must be invested in the company’s funds.
A Fortress spokesman didn’t immediately respond to a phone call seeking comment.
Fortress Three Top Executives Split $44 Million Bonuses In 2015
April 8, 2016
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The decision to grant bonuses for the three top executives by the company is a welcoming move. This will encourage the employees in increasing their productivity and honor their services to the company. The article also gives details regarding the firm which has been much helpful. photo retouching services