Apollo Global Management will revamp its compensation structure to better align pay with performance.
The private equity firm plans to award employees long-term stock options and replace its profit-sharing program with Apollo shares, Chief Financial Officer Martin Kelly said Tuesday in New York.
Mr. Kelly called the plans a compensation reset.
Apollo also intends to give more carried interest, or the cut of profit on deals, to its investment professionals, Mr. Kelly said.
Partners of the New York-based company will receive a long-term award of Apollo shares, according to an investor presentation Tuesday.
The changes are expected to lower Apollo's compensation expense ratio, the firm said.
Apollo had $471.8 billion in assets under management as of June 30.
