Carlyle agrees to pay ex-CEO Lee $3.3 million in severance pay

By Chibuike Oguh

NEW YORK (Reuters) – Carlyle Group Inc has agreed to pay $3.34 million in severance pay to former chief executive Kewsong Lee, in a deal that formally ends his tenure as head of the private equity firm, regulatory filings showed on Tuesday.

In August, Lee abruptly resigned as CEO of Carlyle after its board, controlled by the group’s founders, unexpectedly refused to renew his contract, which was due to expire at the end of the year.

Carlyle said he will pay Lee $1.405 million in base salary and bonuses as well as $1.95 million in stock dividends as part of the separation agreement which expires at the end of this year. The Washington, DC-based company also agreed that most of Lee’s restricted stock options would vest between November and February of next year.

As CEO of Carlyle, Lee earned total compensation of $43.3 million in 2021, consisting of a cash bonus of $5.5 million, $36 million in stock, $275,000 in base salary and $437,245 in deferred interest.

Carlyle co-founder and board member William Conway was named the company’s interim CEO following Lee’s departure. Conway said Tuesday the company is still looking for a permanent CEO.

(Reporting by Chibuike Oguh in New York; Editing by Stephen Coates)

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