The Carlyle Group’s co-founders are earning massive amounts of wealth from the firm, and turning around and investing much of that money back into the firm’s funds.
In total, the private equity giant’s three co-founders earned $288.4 million in dividends alone in 2014, according to documents filed Thursday with the U.S. Securities and Exchange Commission.
David M. Rubenstein earned the most dividends, coming in at $98,229,255, documents show. William E. Conway and Daniel A. D’Aniello each took home $95,094,256 in dividends. Together, the three men own just under 55 percent of the District-based asset management firm.
Dividends tell only part of the story. They each earned $275,000 in salary last year. The co-founders also made money on their own personal investments in Carlyle’s various funds, of which there are scores.
Rubenstein in 2014 received $132,323,512 from those investments, an amount that includes returns of his original investments plus the profits on that investment. (Carlyle does not break out how much is the cash investment and how much is profit on that cash.)
Conway, who as chief investment officer traditionally invests more in funds than his colleagues, earned $247,699,316 in his return of capital and the gains. D’Aniello earned $133,823,834, or close to what Rubenstein took in.
All three billionaires also turned around and invested after-tax cash into the firm, records show. Rubenstein’s after-tax cash investment is $129,719,369. Conway’s investment is $233,152,583. D’Aniello put in $143,439,541 of his cash in the firm’s funds.
— Thomas Heath
Computers, cellphones and land lines in Arizona were knocked out of service for hours, ATMs stopped working, 911 systems were disrupted and businesses were unable to process credit card transactions — all because vandals sliced through a fiber-optic Internet cable buried in the rocky desert.
Alex Juarez, a spokesman
for Internet service provider CenturyLink, said the problem was first reported around noon Wednesday, with customer complaints pouring in from an area extending from the northern edges of Phoenix to cities such as Flagstaff, Prescott, Page and Sedona. Service was reported fully restored by 3 a.m. Thursday.
CenturyLink blamed vandalism, and police are investigating.
The severed CenturyLink-owned cable — actually, a set of cables bundled together in a black conduit a few inches in diameter — was buried several feet under the rocky soil in a dry wash, about a quarter-mile from the nearest houses.
Investigators say the vandals were looking for copper wire — which can fetch high prices as scrap — but didn’t find any after cutting all the way through the cable, probably with power tools, said Officer James Holmes, a Phoenix police spokesman.
“Your average house saw and wire cutters wouldn’t do it,” Holmes said.
— Associated Press
● UnitedHealth said it is tightening its coverage rules on hysterectomies. The largest U.S. health insurer said it will require health-care professionals and facilities and providers to notify it in advance if they plan to perform some types of hysterectomies. UnitedHealth said in a notice to providers it won’t approve the procedure if it concludes that the operation isn’t medically necessary.
● Average long-term U.S. mortgage rates edged up for a third straight week. Mortgage company Freddie Mac said the nationwide average for a 30-year mortgage rose to 3.80 percent from 3.76 percent last week. The rate for the 15-year loan, a popular choice for people who are refinancing, ticked up to 3.07 percent from 3.05 percent last week.
● Standard Chartered said its chief executive and chairman will stand down amid pressure from shareholders impatient with the board’s leadership. CEO Peter Sands will leave in June and be replaced by former J.P. Morgan executive Bill Winters in a shake-up that will see six directors leave the board. Chairman John Peace announced plans to step down in 2016.
— From news services
● 8:30 a.m.: Fourth-quarter gross domestic product.
● 10 a.m.: Index of pending home sales for January.
● Earnings: Pepco Holdings.