Rushe reports: "Often described as 'secretive', Carlyle is famous for its top-level contacts and political hires. It counts former president George Bush, his secretary of state James Baker, and John Major, the former UK prime minister, among its alumni and was a target of Michael Moore's documentary Fahrenheit 9/11."
David Rubenstein, Co-Founder and Managing Director of the Carlyle Group, 05/02/11. (photo: Reuters)
Three Carlyle Founders Each Land a $138m Payday
12 January 12
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he trio who founded private equity powerhouse Carlyle Group took home more than $400m in compensation last year, according to a regulatory filing.
The huge payday for the firm, which claims presidents and prime ministers among its advisers, comes as the private equity industry has fallen under intense scrutiny over the course of the race for the Republican nomination.
Current GOP frontrunner Mitt Romney has come under fire for his time at Carlyle rival Bain Capital, where he amassed a large personal fortune.
Carlyle founders David Rubenstein, Bill Conway and Daniel D'Aniello each received $138m in pay last year, according to documents filed with the top US financial watchdog the Securities and Exchange Commission (SEC).
The three co-founders each received a base salary of $275,000, a bonus of $3.5m, and a $134m share of the firm's investment profits.
Rubenstein, Conway and D'Aniello founded the Washington-based firm 25-years ago and named it after the luxurious New York hotel they favour. It once specialised in defence contracts but has since expanded its investment interests. Recent buyouts include the car rental group Hertz, Dunkin' Donuts and Moncler, the Italian fashion and sportswear brand. The disclosures were made as Carlyle prepares for a stock market listing.
Often described as 'secretive', Carlyle is famous for its top-level contacts and political hires. It counts former president George Bush, his secretary of state James Baker, and John Major, the former UK prime minister, among its alumni and was a target of Michael Moore's documentary Fahrenheit 9/11.
Last year Carlyle returned $17bn to its investors, a company record. In the third quarter Carlyle's net income rose 60% to $918.1m, on revenue of $2bn, the firm disclosed in a regulatory filing.
The payout comes amid intensified scrutiny of the private equity industry from both sides of the political spectrum. Romney's Republican rivals have gone after his record as chief executive of Bain Capital. Newt Gingrich has accused Romney of "looting" companies, depicting him in ads as a greedy job killer "more ruthless than Wall Street". Rival Rick Perry compared the industry to "vultures" in South Carolina this week.
Carlyle itself has had its run-ins with the law. In 2009 it paid $20m to settle a case brought by Andrew Cuomo, then New York attorney-general and now New York governor, which charged that it paid well-connected executives to secure investments from New York state's huge pension fund.
The whole industry has also been criticised, by top investor Warren Buffett among others, for the advantageous tax status its executives enjoy. Thanks to a longstanding tax break, payouts to private equity executives can be treated as a capital gain, taxed at a 15% rate, rather than income, typically taxed at 35%.
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By the way, wikipedia says, "Boiga is a large genus of mildly venomous, rear-fanged, colubrid snakes typically known as the cat-eyed snakes or just cat snakes. They are primarily found throughout southeast Asia, India and Australia, but due to their extremely hardy nature and adaptability have spread to many other suitable habitats around the world."
I didn't immediately get the reference, even though used Wimpy in my analogy.
I agree with most of what you said.
I do not agree that it takes all the money to get elected. Statistics heavily correlate with money and winning, but that would not be the case without vertical integration (consolidation) of the media -- thanks to Clinton's Tele-communicat ions Act of 1996 -- and other election-relate d issues; you mentioned Diebold; and another is Dem Party's hierarchical politics and corporate affiliation, which besides dispensing money to their preferred candidates -- regardless of non-progressive ideology -- includes (poor) strategy and consultant advise.
The answer, of course, is Primary Elections... getting rid of incumbents.
If Obama has a shred of decency, he'll bow out before the Democratic Primaries, which should help non-incumbent Congressional Democrats and turnout for the General Election.
The light shining is on the question... the question of fairness and equality -- in regard to prosecution rules of law and adoption of fair laws that represent the peoples' interest, accountability for greed-driven economic crimes and environmental devastation, and honest, clear -- no excuses -- political representation. .. ... ... in essence, sanity.
And the question for the light is WHEN.
... and how much? ... for the balance and peace of mind of justice.
The OccupyWallStree t movement has the potential of shaking the whole system up and making it perfectly clear that it isn't just change that is needed, but the application of the laws and justice that keep things equitable for all.
more later.
While businesses and businessmen and women do have basic civic and societal responsibilitie s related to their doing business, as long as they follow the law, how they serve society with their profits is their business.
People aren't interested in being punitive, for the sake of punishment pleasure or to introduce pure socialism, it is to bring justice to those who took a chance on criminal greed.
In regard to short-selling, if you are talking about curbing insider-trading or taking away advantages that large-scale traders have over regular traders, that is fine; insider trading is all ready illegal and there are no good reasons to disadvantage smaller traders.
Since only the Progressive-Dem ocrats and Democratic-Soci alist Bernie Sanders (& maybe Ron Paul) are not corrupted by Wall Street, they are the only elected federal officials not being protested against.
And because he was so effective, they just go la-la-la when he talks. We just have to hope that the mainstream corporate Clintonian Democrats, in office, out of office, and just plain folk will understand what is going on.
They didnot advise him or oppose his signature on NAFTA which benefited GOP and the Clinton Family also.
There is very little left of Democratic Party, and a shadow of Republican Party.
The only thing I see are the Puppet Masters, these tyrants were given free reign in the early 70's, now they are the Monsters we were all warned about.
Problem is our parents didnot recognize them any better than people today.
We are Marching, Protesting, signing Petitions and I believe this is just a beginning. If Democrats want to prove something, perhaps they better realign Homeland Paranoia. When they put the demons back in their place, perhaps the Corporations will see that we will either win or bury them.
When I say bury, I mean we will put our money in other Countries that do not depend on them. So Europe, perhaps this is a time to look at the Future of America,new generation of Investing.
Wall Street is hollow like an Chocolate Easter Bunny,they have nothing. They have debt, property no one pays for or can afford. Housing is down, Corporations are selling out to Asia, Middle East so Europe where does that leave you? Time we remind GOP the True Meaning of Tea Party "Let's sink their Ship'. Buy Organic. Buy American.
Critics say they are not focused, how can a movement like this be focused on one specific thing when the problems to fix are so numerous. Wall Street is a perfect place to start.
Tonight they can sleep tight. There are some very brave and incredibly bright protestors here and running things very Democratically.
Interesting to see how they've had to form a mini government within. See, we do need a government, it just has represent the people.
At this point the movement is progressive and inclusive.