Daniel Och’s Ownership Stake Grows

Chidem Kurdas

Och-Ziff Capital went public in 2007 but founder and chief executive Daniel Och owns most of the voting interest.  Now he’s received another block of shares.

The additional stock reverted to him because a limited partner forfeited ownership.  

Mr. Och bought Och-Ziff stock after the crisis drove down the market. In addition, he gets a lot of equity as compensation. He holds some of the stock via trusts he’s established for his family.  His stock holding can be seen as a good thing, evidence of his confidence in the business and the right kind of incentive.  And on the whole, he has done well by investors in the funds.   

Shareholders in the public company have not done as well. The share price is still down from the peak in 2007.  If the shares are undervalued, Mr. Och’s big ownership stake will turn out to be a great long-term trade.  And his purchases may have supported the price during down market.

Meanwhile he has a high degree of control, enhanced by additional acquisitions of stock.   One troublesome question is to what extent the board of directors can exert independent oversight under such conditions. Recently two long-time members of the Och-Ziff  board left and were replaced by newcomers. 

This kind of situation, where a founder continues to run a public company, is of course not unique to Och-Ziff.

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One Response to “Daniel Och’s Ownership Stake Grows”

  1. Och-Ziff Clients vs. Shareholders « HedgeFundSmarts Says:

    […] in the past 12 months Och-Ziff Capital Management went down around 50%.  On the positive side, founder Daniel Och has been acquiring stock for years and recently indicated he expects to get another $20 million worth.  Other Och-Ziff executive are […]

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