John C. Redett
Chief Financial Officer and Head of Corporate Strategy at CG
Executive
About John C. Redett
John C. Redett, age 57, is Chief Financial Officer and Head of Corporate Strategy at The Carlyle Group (CG), based in New York. He joined Carlyle in 2007, previously leading the Global Financial Services team as sole Head (2020–Sep 2023) and Co-Head (2016–2020), with prior roles at Goldman Sachs (2005–2007) and JPMorgan (2000–2005). He holds an MBA from NYU and a BS from the University of Colorado, and currently serves on the boards of Hilb Group and NSM Insurance Group . Carlyle delivered a 28% total shareholder return in 2024, with U.S. GAAP income before tax of $1.4 billion and a 25.7% margin; 2024 FRE margin improved to 46% from 37% in 2023 and the cash compensation ratio fell to 36% from 45% . These firm outcomes underpin pay-for-performance structures that drive Redett’s equity-heavy compensation and alignment.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Carlyle Group | Head, Global Financial Services (sole Head; Co-Head prior) | 2016–Sep 2023 | Led financial services investments; key contributor to significant deals across subsectors; platform leadership . |
| Goldman Sachs | Professional | 2005–2007 | Financial services experience added to investing discipline . |
| JPMorgan | Professional | 2000–2005 | Credit and structuring expertise foundational to CFO role . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hilb Group | Director | Current | Board oversight of insurance brokerage platform aligned to Carlyle portfolio . |
| NSM Insurance Group | Director | Current | Governance and strategic guidance at specialty insurance MGA aligned to CG investments . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $500,000 | $500,000 |
| Cash Bonus ($) | $2,250,000 | $2,005,000 (cash portion of $3,000,000 bonus) |
Performance Compensation
| Incentive Type | Metric | Target/Structure | Actual/Payout | Vesting |
|---|---|---|---|---|
| Annual Performance Bonus (2024) | Firm/individual performance | Committee-determined; total $3,000,000 | $3,000,000 (cash $2,005,000 + RSU deferral $995,000) | RSU deferral vests 1/3 on Feb 6, 2025/2026/2027 . |
| Stock Price Appreciation PSUs (Feb 6, 2024; 501,003 PSUs) | Stock price performance | Tranches at 120% ($48.05), 140% ($56.06), 160% ($64.06) of $40.04; 30-day avg close; 3-year window to Feb 6, 2027 | First hurdle achieved Nov 6, 2024; 167,001 PSUs vested Feb 6, 2025 | Time gates at 1, 2, 3 years; retention of 30% of vested shares generally required for 3 years/1 year post-termination . |
| Annual Time-Vesting RSUs (Feb 6, 2024; 429,800 RSUs) | Time-based | — | Grant-date fair value $17,501,456 | 40% on Aug 1, 2025; 30% on Aug 1, 2026; 30% on Aug 1, 2027 . |
| Bonus Deferral RSUs (Feb 6, 2024; 8,955 RSUs) | Time-based | — | Grant-date fair value $364,648 | 1/3 on Feb 6, 2025; Feb 6, 2026; Feb 6, 2027 . |
| Annual Time-Vesting RSUs (Feb 1, 2025; 257,412 RSUs) | Time-based | — | — | 40% on Aug 1, 2026; 30% on Aug 1, 2027; 30% on Aug 1, 2028 . |
| Carried Interest (direct) | Fund performance | Allocations in respect of Financial Institutions Group and select funds; personal “giveback” obligation may apply | $210 cash distributions in 2024 | Vesting tied to service; paid upon realizations with giveback mechanics . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 120,905 shares; less than 1% of outstanding . |
| Unvested RSUs at 12/31/2024 | 615,971 units; market value $31,100,376 at $50.49 close . |
| Unvested PSUs at 12/31/2024 | 334,002 units; market value $16,863,761 at $50.49 close . |
| Earned but unvested PSUs at 12/31/2024 | 167,001 PSUs earned; vested Feb 6, 2025 per service gate . |
| Stock ownership guidelines | Other executive officers must own ≥$2.5 million or ≥3x salary; retain at least 50% of net after-tax shares until compliant (75% if not within 5 years). As of 12/31/2024, all covered executives were compliant except Ms. LoBue (phase-in) . |
| Hedging/pledging | Hedging and short positions prohibited; pledging generally prohibited without prior consent. No pledges by executive officers or Board members other than Co-Founder Rubenstein (approved) . |
| Forced retention from PSUs | 30% of any vested shares from Stock Price Appreciation PSUs generally must be retained for up to 3 years/1 year post-termination . |
Forthcoming vesting cadence (insider selling pressure context)
- Annual RSUs from 2024 grant: eligible 40% on Aug 1, 2025; 30% on Aug 1, 2026; 30% on Aug 1, 2027 (on 429,800 RSUs) .
- Bonus Deferral RSUs from 2024 bonus (8,955 RSUs): 1/3 annually on Feb 6, 2025/2026/2027 .
- 2024 PSUs: remaining tranches tied to $56.06 and $64.06 hurdles through Feb 6, 2027; vest contingent on hurdle achievement and service gates .
- 2025 annual RSUs (257,412): 40% on Aug 1, 2026; 30% on Aug 1, 2027; 30% on Aug 1, 2028 .
Retention requirements (PSUs 30% hold; executive ownership guidelines) mitigate near-term selling pressure from these vestings .
Employment Terms
- Severance: None for Redett; LoBue has limited severance; CEO has defined severance multiples, but Redett does not have cash severance entitlement .
- Change-in-control equity treatment: For Stock Price Appreciation PSUs, hurdles measured at 2nd-to-last trading day price of consideration; earned tranches remain subject to service; if terminated without Cause within 2 years post-CIC or between signing and close, deemed-earned PSUs vest .
- Time-vesting RSUs acceleration: Unvested RSUs granted after Jan 1, 2022 accelerate if terminated without Cause within 12 months following a CIC .
- Bonus Deferral RSUs: If terminated without Cause, unvested deferral RSUs remain eligible to vest on schedule; retirement (age 55+ and ≥5 years) also remains eligible, subject to covenants .
- Restrictive covenants: 6-month notice to resign/retire; 12-month post-employment non-compete and non-solicit of employees/investors; participation restrictions in transactions under active consideration at Carlyle .
Compensation Structure Analysis
- Mix shift to equity and stock price PSUs: 2024 PSUs replaced prior one-year performance RSUs, tying vesting strictly to absolute stock price hurdles over three years—favoring TSR-driven alignment and retention via service gates and 30% hold requirements .
- Ownership alignment: Executive stock ownership guidelines ($2.5mm/3x salary) and mandatory retention promote longer holding periods; Redett is in compliance, supporting alignment .
- Carry participation: Direct carry allocations and CIP alignment pay only upon realized fund performance with giveback obligations, curbing excessive risk-taking and anchoring long-term value creation .
- Share repurchases: Approximately $555 million in 2024, reducing dilution and shares outstanding for second consecutive year—financial engineering lever overseen by Redett as CFO .
- Say-on-pay support: Approval improved to 81% in 2024 from 68% in 2023, indicating increased shareholder acceptance of revised pay program .
Equity Compensation and Ownership Tables
Summary Compensation (Redett)
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | $500,000 | $500,000 |
| Cash Bonus ($) | $2,250,000 | $2,005,000 |
| Stock Awards ($) | — | $30,945,622 |
| All Other Compensation ($) | $79,346 | $210 |
| Total ($) | $2,829,346 | $33,450,832 |
Grants of Plan-Based Awards (2024)
| Award | Grant Date | Shares/Units | Grant Date Fair Value ($) |
|---|---|---|---|
| 2024 Annual Time-Vesting RSUs | Feb 6, 2024 | 429,800 | $17,501,456 |
| 2023 Bonus Deferral RSUs (granted 2024) | Feb 6, 2024 | 8,955 | $364,648 |
| Stock Price Appreciation PSUs | Feb 6, 2024 | 501,003 target; 167,001 threshold | $13,079,518 |
Outstanding Equity Awards at 12/31/2024
| Award Type | Units Unvested (#) | Market Value ($ at $50.49) |
|---|---|---|
| RSUs | 615,971 | $31,100,376 |
| PSUs (final two tranches) | 334,002 | $16,863,761 |
Risk Indicators & Red Flags
- Hedging/pledging: Hedging and shorts prohibited; pledging generally prohibited—no pledging by Redett, reducing alignment risk .
- Clawbacks: Two policies—broad incentive compensation clawback (restatements, inaccurate metrics, detrimental activity) and Dodd-Frank-compliant mandatory clawback for restatements—mitigate governance and pay-risk concerns .
- Related party transactions: Direct carry and coinvest programs disclosed; personal investments aligned with fund investors; no adverse party transactions implicated for Redett .
- Say-on-pay: Improved support reduces near-term compensation controversy risk .
Performance & Track Record
- 2024 firm TSR: 28% .
- Financials: U.S. GAAP income before tax $1.4 billion; 25.7% margin .
- Operating improvements under CFO/strategy remit: FRE margin to 46% from 37% (2023), cash compensation ratio to 36% from 45%; disciplined capital allocation, repurchases (~$555 million), and focus on higher-growth units .
- Capital formation and wealth initiatives: Evergreen products and $4.5 billion raised (firm-level), with CFO oversight of capital strategy .
Compensation Committee Analysis
- Committee members: Anthony Welters (Chair), Lawton W. Fitt, Mark S. Ordan, Derica W. Rice .
- Independent consultant: Pay Governance; peer references included Apollo, Ares, Blackstone, Blue Owl, KKR, TPG, among others, with emphasis on alternative managers .
- Governance practices: Executive stock ownership, clawbacks, prohibition of hedging, and retention holds; no excise tax gross-ups; equity-heavy, at-risk pay .
Employment Terms (Severance & Change-of-Control Economics)
| Provision | Redett Terms |
|---|---|
| Cash Severance | None . |
| Bonus Deferral RSUs | Remain eligible to vest if terminated without Cause; eligible upon retirement per plan definition . |
| Time-Vesting RSUs | Accelerate if terminated without Cause within 12 months post-Change in Control for awards granted following Jan 1, 2022 . |
| Stock Price PSUs | Earned tranches vest upon death/disability or termination without Cause; CIC measurement mechanics and vesting if terminated without Cause within 2 years post-CIC or between signing and closing . |
| Restrictive Covenants | 6-month notice; 12-month non-compete and non-solicit of employees/investors; transaction participation restrictions . |
Investment Implications
- Alignment: Heavy use of multi-year stock price PSUs and substantial RSU ownership, plus executive ownership guidelines and PSU hold requirements, create strong alignment with long-term TSR and reduce near-term selling pressure despite meaningful vesting cadence .
- Retention risk: No cash severance suggests less golden parachute protection; however, equity acceleration mechanics (CIC/time gates; deferral RSUs eligibility after termination without Cause) and carry participation support retention and continuity .
- Trading signals: Upcoming RSU/PSU vest dates could add supply, but mandated retention and guideline compliance temper immediate sell pressure; monitoring Form 4 filings around Aug 1 and Feb 6 vesting windows is prudent given significant award sizes .
- Execution: CFO-led improvements in FRE margin and compensation efficiency, alongside share repurchases (~$555 million in 2024), indicate disciplined capital and cost management—supportive for equity holders if sustained .
- Governance: Strong clawbacks, prohibition of hedging/pledging (with disclosed exception unrelated to Redett), and improved say-on-pay vote reduce governance risk and support investor confidence in pay structures .