Blackstone To Grant Equity To Rank-And-File Employees At US Buyouts: Report
Portfolio Pulse from Shivani Kumaresan
Blackstone Inc. (NYSE:BX) is launching a plan to grant equity to the majority of employees at its U.S. buyout companies, starting with Copeland, a climate-technologies unit purchased from Emerson Electric Co (NYSE:EMR). The initiative aims to broaden ownership beyond management and is part of a wider trend in the buyout industry. KKR & Co Inc (NYSE:KKR) and other private-equity firms have similar programs. Blackstone's stock has gained over 50% in the last 12 months.
May 22, 2024 | 10:44 am
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NEUTRAL IMPACT
Blackstone's new equity grant program will start with Copeland, a climate-technologies unit purchased from Emerson Electric Co. This could indirectly benefit Emerson by highlighting the value of its divested assets.
While the news is more directly related to Blackstone, Emerson Electric could see some indirect benefits as the value of its divested assets is highlighted. However, the immediate impact on Emerson's stock price is likely to be neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Blackstone's stock via the Amplify AI Powered Equity ETF (NYSE:AIEQ).
The positive news about Blackstone could indirectly benefit the Amplify AI Powered Equity ETF, which includes Blackstone in its portfolio.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 20
POSITIVE IMPACT
Blackstone Inc. is launching a plan to grant equity to the majority of employees at its U.S. buyout companies, starting with Copeland. This initiative aims to broaden ownership beyond management and is part of a wider trend in the buyout industry.
The equity grant initiative is likely to improve employee morale and retention, aligning their interests with those of management and shareholders. This could lead to better operational performance and investor sentiment, positively impacting the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Blackstone's stock via the First Trust Growth Strength ETF (NASDAQ:FTGS).
The positive news about Blackstone could indirectly benefit the First Trust Growth Strength ETF, which includes Blackstone in its portfolio.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 20
POSITIVE IMPACT
KKR & Co Inc. has been a pioneer in broad-based employee ownership programs since 2011. Blackstone's similar initiative underscores the growing trend in the industry.
KKR's pioneering role in employee ownership programs is reinforced by Blackstone's new initiative. This could positively impact KKR's stock as it highlights the firm's leadership in this area.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30