Leon Black, the CEO of Apollo Global Management, will be stepping down from his position as CEO and chairman of the board after a review into his ties to Jeffrey Epstein was completed. The review found that Black had made payments totalling $158 million to Epstein for advice on various aspects of his personal financial affairs, including his family office, airplane, yacht, and artwork. Black also made two loans to Epstein worth $30.5 million in 2017.
Epstein’s relationship with Black began in the mid-1990s, but their ties deteriorated after Epstein failed to repay $20 million of the loans and refused to pay tens of millions of dollars in fees that Epstein demanded. They severed ties in October 2018.
Black will be replaced by Scott Kleinman as CEO and James Zelter as chairman of the board. The board will also be expanded to include four new independent directors, including Pamela Joyner and Siddhartha Mukherjee.
Apollo Global Management has faced criticism for its ties to Epstein, who was convicted in Florida a decade earlier for soliciting prostitution from a minor. Epstein’s death in August 2019 while awaiting trial on sex trafficking charges led to renewed scrutiny of his relationships with powerful figures in high society.
In response to the review, Black pledged $200 million toward initiatives that seek to achieve gender equality and protect and empower women, as well as helping survivors of domestic violence, sexual assault, and human trafficking.
The changes come as Apollo Global Management prepares for a potential listing on the S&P Global indices. The company’s decision to adopt a "one share, one vote" corporate governance structure could qualify it for listing on the S&P Global indices.