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

Carlyle CEO Harvey Schwartz said senior professionals at his company wanted their compensation more tightly tied to performance.
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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