Michael Cavanagh, the longtime JPMorgan Chase executive who is preparing to join the Carlyle Group, will make $7m in salary and bonus in each of his first three years at the private equity giant, a regulatory filing on Friday showed.
The New York Times reports that Cavanagh, who this week was named the new co-president and co-chief operating officer of Carlyle, is also set to receive $32m in restricted stock when he joins the firm, to replace unvested compensation that he gave up by leaving JPMorgan. His 933,416 restricted shares will vest over a three-year period.
In addition, Cavanagh will participate in a new compensation program aimed at retaining senior talent, the filing said. Under that program, he will receive restricted stock equal to 0.5% of the profits. The program is intended to push rewards years into the future, as Carlyle typically takes five years or so to start harvesting a given investment.
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