Form 4: Carlyle CEO Schwartz's Shares Withheld for Tax

Carlyle Group CEO Harvey M. Schwartz had 578,862 shares withheld by the company for tax obligations related to a restricted stock unit award vesting.

Summary

• Harvey M. Schwartz, Chief Executive Officer and Director of Carlyle Group Inc. (CG), had 578,862 shares of common stock withheld by the issuer.
• This withholding was for the payment of taxes associated with the vesting of a previously reported restricted stock unit award, including accrued dividend equivalent units.
• The transaction occurred on February 1, 2026, at a price of $58.78 per share.
• No shares were sold by Mr. Schwartz; the shares were solely withheld by the company for tax purposes.
• Following this transaction, Mr. Schwartz beneficially owns 5,350,734 shares of common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing a routine administrative action related to executive compensation and tax compliance, with no direct positive or negative implications for the company's operational or financial performance.

Positives

• The underlying event is the vesting of a restricted stock unit award, which represents a form of earned compensation for the CEO.
• The CEO's beneficial ownership remains substantial at 5,350,734 shares, indicating continued alignment with shareholder interests.

Negatives

• 578,862 shares were withheld, reducing the direct share count beneficially owned by the CEO, though this is a standard procedure for tax obligations on RSU vesting.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• No direct quotes or paraphrased statements from company management are provided in this Form 4 filing.

Industry Context

StockSavvy.ai notes that the withholding of shares for tax purposes upon the vesting of restricted stock units is a common and routine practice in executive compensation across the financial services industry. This transaction reflects the realization of previously granted equity compensation rather than a discretionary sale by the executive, aligning with typical compensation structures for senior leadership at publicly traded alternative asset managers like Carlyle Group.

Comparison to Industry Standards

• StockSavvy.ai observes that the use of restricted stock units (RSUs) as a significant component of executive compensation, with shares withheld for tax obligations upon vesting, is a standard practice among global financial institutions and alternative asset managers.
• For instance, executives at firms such as Blackstone, KKR, and Apollo Global Management frequently have similar RSU vesting events where a portion of shares are withheld to cover statutory tax liabilities, rather than requiring the executive to fund these taxes out-of-pocket.
• This mechanism ensures tax compliance while maintaining a substantial equity stake for the executive, which is a common goal in aligning management incentives with long-term shareholder value.

Related Party Transactions

• This filing details a transaction between the issuer and its CEO related to compensation, which is a common type of related party transaction, but does not disclose any unusual or new related party dealings beyond the standard RSU vesting and tax withholding.

Stakeholder Impact

• Shareholders: Minimal direct impact as it's a routine compensation-related tax withholding, not a discretionary sale. The CEO retains a significant equity stake.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Key Dates

Keywords

Carlyle Group, CG, Harvey M. Schwartz, SEC Form 4, Insider Transaction, Restricted Stock Unit, RSU, Executive Compensation, Tax Withholding, Beneficial Ownership