KKR & Co. Inc.KKR
KKR & Co. Inc. Stock Compensation Disclosure
EQUITY-BASED COMPENSATION
The following table summarizes the expense associated with equity-based compensation in connection with KKR equity
incentive awards for the years ended December 31, 2025, 2024, and 2023, respectively.
For the Years Ended December 31, | |||||
2025 | 2024 | 2023 | |||
Asset Management(1) | $621,974 | $611,644 | $502,816 | ||
Insurance | 100,135 | 134,799 | 115,653 | ||
Total | $722,109 | $746,443 | $618,469 | ||
(1)For the year ended December 31, 2025, KKR recorded acquisition-related stock consideration of $5.1 million.
KKR Equity Incentive Awards
Under KKR's equity incentive plan, KKR is permitted to grant equity awards representing ownership interests in
KKR & Co. Inc. common stock. On March 29, 2019, the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the
"2019 Equity Incentive Plan") became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer
makes further grants under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan, and the 2019 Equity
Incentive Plan became KKR's only plan for providing new equity awards by KKR & Co. Inc. The total number of equity awards
representing shares of common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the
aggregate number of the shares of common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units
held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. As of December 31, 2025, 53,140,914
shares may be issued under the 2019 Equity Incentive Plan. KKR has also issued equity grants in the form of restricted
holdings units through KKR Holdings III L.P. ("KKR Holdings III"), which are not issued under the 2019 Equity Incentive Plan and
are currently held by certain current and former KKR employees. Equity awards granted generally consist of (i) restricted stock
units that convert into shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings
units that are exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions,
including those described below.
Service-Vesting Awards
KKR grants restricted stock units and restricted holdings units that are subject to service-based vesting, typically over a
to five-year period from the date of grant (referred to hereafter as "Service-Vesting Awards"). In certain cases, these
Service-Vesting Awards may have a percentage of the award that vests immediately upon grant, and certain Service-Vesting
Awards may have vesting periods longer than five years. Additionally, some but not all Service-Vesting Awards are subject to
transfer restrictions and/or minimum retained ownership requirements. Generally, the transfer restriction period, if
applicable, lasts for (i) one year with respect to one-half of the awards vesting on any vesting date and (ii) two years with
respect to the other one-half of the awards vesting on such vesting date. While providing services to KKR, some but not all of
these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares
of common stock equivalents equal to at least 15% of their cumulatively vested awards that have or had the minimum
retained ownership requirement. Holders of the Service-Vesting Awards do not participate in dividends until such awards
have met their vesting requirements.
Expense associated with the vesting of these Service-Vesting Awards is based on the closing price of KKR & Co. Inc.
common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested
equity awards. Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to
7% annually based upon expected turnover by class of recipient.
As of December 31, 2025, there was approximately $775 million of total estimated unrecognized expense related to
unvested Service-Vesting Awards, which is expected to be recognized over the weighted average remaining requisite service
period of 2.4 years.
A summary of the status of unvested Service-Vesting Awards from January 1, 2025 through December 31, 2025 is
presented below:
Shares | Weighted Average Grant Date Fair Value | ||
Balance, January 1, 2025 | 21,105,890 | $64.65 | |
Granted | 2,413,187 | 112.30 | |
Vested | (6,396,381) | 59.60 | |
Forfeitures | (978,911) | 73.31 | |
Balance, December 31, 2025 | 16,143,785 | $73.25 |
Market Condition Awards
KKR also grants restricted stock units and restricted holdings units that are subject to both a service-based vesting
condition and a market price based vesting condition. The following is a discussion of the Market Condition Awards, excluding
the Co-CEO Awards (as defined and discussed below).
The number of Market Condition Awards (other than the Co-CEO awards) that will vest depend upon (i) the market price
of KKR common stock reaching certain price targets that range from $45.00 to $140.00 and (ii) the employee being employed
by KKR on a certain date, which typically ranges from to six years from the date of grant (with exceptions for involuntary
termination without cause, death and permanent disability). The market price vesting condition is met when the average
closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets. Holders of the
Market Condition Awards do not participate in dividends until such awards have met both their service-based and market
price based vesting requirements. Additionally, these awards are subject to additional transfer restrictions and minimum
retained ownership requirements after vesting.
Due to the existence of the service requirement, the vesting period for these Market Condition Awards (other than the
Co-CEO awards) is explicit, and as such, compensation expense will be recognized on (i) a straight-line basis over the period
from the date of grant through the date the award recipient is required to be employed by KKR and (ii) assumes a forfeiture
rate of up to 7% annually based upon expected turnover. The fair value of the awards granted are based on a Monte Carlo
simulation valuation model. In addition, the grant date fair value assumes that holders of the Market Condition Awards will
not participate in dividends until such awards have met all of their vesting requirements.
Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant
assumptions used to estimate the grant date fair value of these Market Condition Awards:
Weighted Average | Range | ||
Grant Date Fair Value | $30.62 | $19.87 - $79.94 | |
Closing KKR share price as of valuation date | $51.74 | $37.93 - $98.62 | |
Risk Free Rate | 2.21% | 0.41% - 4.41% | |
Volatility | 30.04% | 28.00% - 38.00% | |
Dividend Yield | 1.27% | 0.71% - 1.53% | |
Expected Cost of Equity | 10.74% | 9.13% - 11.80% |
As of December 31, 2025, there was approximately $358 million of total estimated unrecognized expense related to these
unvested Market Condition Awards, which is expected to be recognized over the weighted average remaining requisite
service period of 1.6 years.
A summary of the status of unvested Market Condition Awards from January 1, 2025 through December 31, 2025 is
presented below:
Shares | Weighted Average Grant Date Fair Value | ||
Balance, January 1, 2025 | 38,019,023 | $31.33 | |
Granted | — | — | |
Vested | (65,467) | 44.84 | |
Forfeitures | (628,295) | 46.26 | |
Balance, December 31, 2025 | 37,325,261 | $31.05 |
As of December 31, 2025, all of the Market Condition awards have met their market price based vesting condition. These
Market Condition awards remain unvested until their service conditions (as described above) are satisfied.
Co-CEO Awards
On December 9, 2021, the Board of Directors approved grants of 7.5 million restricted holdings units to each of KKR’s Co-
Chief Executive Officers that are subject to both a service-based vesting condition and a market price based vesting condition
(referred to hereafter as "Co-CEOs Awards"). For both Co-Chief Executive Officers, 20% of the Co-CEOs Awards are eligible to
vest at each of the following KKR common stock prices targets: $95.80, $105.80, $115.80, $125.80 and $135.80. The market
price based vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days
meets or exceeds the stock price targets. In addition to the market price based vesting conditions, in order for the award to
vest, the Co-Chief Executive Officer is required to be employed by KKR on December 31, 2026 (with exceptions for involuntary
termination without cause, death and permanent disability).
These awards will be automatically canceled and forfeited upon the earlier of a Co-Chief Executive Officer’s termination
of service (except for involuntary termination without cause, death or permanent disability) or the failure to meet the market
price based vesting condition by December 31, 2028 (for which continued service is required if the market price vesting
condition is met after December 31, 2026). Co-CEO Awards do not participate in dividends until such awards have met both
their service-based and market price based vesting requirements. Additionally, these awards are subject to additional transfer
restrictions and minimum retained ownership requirements after vesting.
Due to the existence of the service requirement, the vesting period for these Co-CEO Awards is explicit, and as such,
compensation expense will be recognized on a straight-line basis over the period from the date of grant through December
31, 2026 given the derived service period is less than the explicit service period. The fair value of the awards granted are
based on a Monte Carlo simulation valuation model. In addition, the grant date fair value assumes that these Co-CEO Awards
will not participate in dividends until such awards have met all of their vesting requirements.
Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant
assumptions used to estimate the grant date fair value of these Co-CEO Awards:
Grant Date Fair Value | $48.91 |
Closing KKR share price as of valuation date | $75.76 |
Risk Free Rate | 1.42% |
Volatility | 28.0% |
Dividend Yield | 0.77% |
Expected Cost of Equity | 9.36% |
As of December 31, 2025, there was approximately $145 million of total estimated unrecognized expense related to these
unvested Co-CEO Awards, which is expected to be recognized ratably from January 1, 2026 to December 31, 2026. As of
December 31, 2025, all Co-CEO Awards have met their market price based vesting condition. The Co-CEO Awards remain
unvested until their service conditions (as described above) are satisfied.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2017 | Feb 23, 2018 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.