Carry up 50% on year for KKR co-founders

KKR’s co-founders Henry Kravis and George Roberts each received compensation of $94 million in 2011, according to the firm’s latest 10-K filing.

The majority of that sum was made up of distributions gained through the pair’s combined 25 percent ownership stake in the firm, which listed on the New York Stock Exchange in 2010. KKR paid a dividend of $0.74 per share in 2011, resulting in Kravis and Roberts each receiving $64.2 million in cash from dividend payments, and a marked increase from the $0.60 payout per share in 2010. 

The pair also experienced a 50 percent increase in carried interest relative to 2010 compensation figures, amounting to $30 million apiece. A $300,000 base salary remained unchanged from last year's filing. 

As carried interest is currently treated as capital gains and charged at a tax rate of 15 percent, both Kravis and Roberts can expect to pay up to $4.5 million in tax on their share of the firm’s carry. If carry were to be taxed as regular income at 35 percent, as per President Obama’s budget proposal earlier this month, the pair’s tax bill would jump to $10.5 million.

Kravis and Roberts were reimbursed nearly $360,000 combined related to their use of a car and driver during 2011, as well as a combined $280,000 related to “certain personnel who administer personal matters” for the pair, the filing revealed.

Cash invested by executives and their investment vehicles aggregated to $78.5 million in 2011, of which Kravis and Roberts contributed $15.7 million and $58.2 million respectively, the statement said.

KKR also spent $5 million on chartering private aircraft during 2011, of which $4.3 million was paid to entities collectively controlled by Kravis and Roberts, the document revealed.

Kravis earned $40,000 and $23,000 in fees respectively for his service on the board of KKR portfolio companies First Data Corporation and China International Capital Corporation in 2011, according to the document.