His whole compensation practically tripled from the $7.2 million he was paid throughout 2020, in line with a 10-Okay filed Feb. 28 by KKR.
The package deal included a $300,000 base wage, $4.5 million in money funds of carried curiosity, and a virtually $5.5 million bonus, in line with the submitting. Sorkin acquired inventory awards valued at greater than $10.2 million.
In contrast to the cash-focused compensation that legislation agency companions obtain, Sorkin has lengthy been one of the upper paid U.S. legislation division leaders, because of a mixture of inventory choices and awards and different advantages.
KKR disclosed his pay in the identical month it reported a 158% enhance in distributable earnings in the course of the fourth quarter. KKR and publicly traded rivals reported robust years with personal fairness exits within the U.S. reaching $850 billion, Bloomberg Information reported, citing Pitchbook knowledge.
KKR didn’t reply to a request for remark about Sorkin’s pay.
Suggested Co-Founders
Sorkin, a member of KKR’s govt committee, is a former company associate at Simpson Thacher & Bartlett. KKR employed him in 2007 to be its first basic counsel.
Throughout his time in personal apply, Sorkin suggested KKR’s co-founders Henry Kravis and George Roberts on offers that made their careers, together with the landmark $31 billion leveraged buyout and takeover battle for RJR Nabisco Inc. in 1988 chronicled within the best-selling guide “Barbarians on the Gate.”
Kravis and Roberts, his cousin, introduced final October a management change at KKR that noticed them each change into co-chairmen of the agency. Joseph Bae and Scott Nuttall took over as co-CEOs for KKR.
Bae and Nuttall got incentive compensation packages that would see every personal greater than $1 billion in KKR inventory, in line with Bloomberg Information.
Inventory Award
KKR’s 10-Okay exhibits that below the agency’s fairness incentive plan, Sorkin’s inventory award is comprised of 300,000 restricted holdings models he acquired final yr, with one other 1 million in restricted holdings models given to Bae valued at $34.1 million.
The whole market worth of Sorkin-owned KKR shares that haven’t but vested is $22.4 million, in line with the agency’s 10-Okay. Securities filings present that Sorkin bought off virtually $6.6 million in KKR inventory final yr.
KKR mentioned it assessed Sorkin’s contributions based mostly on “his management and oversight of our world authorized, compliance, enterprise danger, and inner audit capabilities and his position with respect to the strategic initiatives undertaken by the agency,” which regardless of the coronavirus pandemic “skilled robust monetary efficiency in 2021.”
Sorkin didn’t obtain a inventory award in both 2020 or 2019, in line with statements by the New York-based personal fairness agency, which raised report quantities of money final yr and has guess huge on the know-how sector.
Sorkin’s KKR compensation was first revealed in 2010 when he performed a key position on the agency’s preliminary public providing that yr. Simpson Thacher, Sorkin’s former agency, served as securities counsel to KKR with a couple of half-dozen different authorized advisers working for associated events on KKR’s market debut.
Blackstone, TPG
Different funding corporations have additionally just lately unveiled what their legislation division leaders earned throughout 2021.
Bloomberg Regulation reported earlier this week on Blackstone Inc.’s chief authorized officer receiving a $17.8 million pay package deal final yr, one by which Blackstone additionally paid practically $70 million to Kirkland & Ellis.
TPG Inc., which just a few years in the past selected to remain personal, not like buyout business rivals KKR and Apollo International Administration Inc., lastly went public in January.
Securities filings associated to that itemizing present that TPG basic counsel Bradford Berenson was paid practically $4.1 million final yr. The majority of Berenson’s pay was in money within the type of a $500,000 base wage and $3 million bonus.
Berenson, a former Sidley Austin associate, joined TPG in 2017.
TPG Capital, the agency’s personal fairness arm, employed a new authorized chief final yr in Deirdre Harding, a former affiliate basic counsel on the Goldman Sachs Group Inc.
Harding changed Adam Fliss, who’s now the highest lawyer for Affected person Sq. Capital LP, a well being care funding agency based by former KKR govt James Momtazee.