Blackstone Inc. Chief Executive Officer Steve Schwarzman has once again crossed the billion-dollar earnings threshold, collecting just over $1 billion in pay and dividends for 2024. This milestone underscores the immense wealth tied to private equity leaders at a time when Washington is ramping up scrutiny over how such profits are taxed.

Schwarzman, 78, remains the single largest shareholder in Blackstone, the world’s biggest alternative asset manager, with an almost 20% stake valued at approximately $37 billion. The bulk of his earnings came from dividends, totaling $916 million, reflecting an 11.5% increase from the previous year. While his incentive fees and carried interest profits fell from 2023 levels, he still amassed $83.7 million in these earnings, dwarfing his $350,000 base salary.

The latest disclosure highlights the deep financial ties between Schwarzman and Blackstone, despite the firm’s day-to-day operations being led by President and heir-apparent Jon Gray. Schwarzman’s continued dominance at the firm raises questions about the long-term leadership transition, even as Gray consolidates power.

Schwarzman’s staggering earnings emerge against the backdrop of a renewed political battle over the taxation of private equity profits. U.S. President Donald Trump has pledged to eliminate the so-called carried interest loophole, which allows certain earnings—such as those derived from private equity deals—to be taxed at a lower capital gains rate rather than as ordinary income. Critics argue this tax treatment disproportionately benefits billionaires and high-net-worth executives, further fueling wealth inequality.

A well-connected Republican donor, Schwarzman has long defended carried interest, arguing that its favorable tax treatment incentivizes long-term investment. His name is prominently associated with philanthropic contributions, including the Schwarzman College of Computing at MIT and the New York Public Library’s flagship building.

Beyond taxation, Blackstone itself remains a financial powerhouse, overseeing a record $1.1 trillion in assets. The firm’s diverse portfolio includes commercial real estate, private credit lending, and leveraged buyouts. In 2024, earnings tied to fees and asset sales saw an uptick, despite challenges in the private equity sector, where dealmaking faced headwinds due to market volatility.

Jon Gray, Blackstone’s No. 2 executive, continues to expand his influence within the firm. In 2024, Gray took home $247 million, primarily from dividends ($169.7 million) and carried interest ($44 million). Gray has steered Blackstone’s strategic focus toward high-growth sectors like data centers and technology, broadening its reach beyond traditional institutional investments.

Under his leadership, the firm has also aggressively pursued opportunities in the insurance sector, leveraging its capital to finance corporate loans—an area historically dominated by banks. This shift underscores the evolving nature of private equity, where firms are no longer just buyout specialists but diversified financial powerhouses.