Steve Schwarzman’s $100 Million Fig Leaf

Steve Schwarzman, the famed birthday boy, wealth-denying billionaire and scourge of the private-equity world, has just closed his largest charitable deal.

A NYPL lion

An article in the New York Times by Robin Pogrebin broke news that Mr. Schwarzman is pledging $100 million to the New York Public Library. In return (of course there’s an in return) the librarys famed 42nd Street building — the one with the lions — will be renamed for Mr. Schwarzman.

On its face, this a commendable deal. The money will jump-start the librarys $1 billion capital campaign, which helps pay for renovations, new buildings, scholarships and educational outreach. By supporting the library, Mr. Schwarzman is following in the footsteps of Andrew Carnegie, who first launched the national library system through his philanthropic gifts.

Yet the timing of the Schwarzman gift seems a little too opportune. A profile in the New Yorker last month by James Stewart made the point that Mr. Schwarzman is often criticized for not giving to charity at levels commensurate with his wealth. He serves on plenty of nonprofit boards but, according to the article, a board member is expected to make contributions that roughly correlate to the size of his personal fortune. In Schwarzmans case, this aspect of the pact has generated considerable controversy and ill will, especially given his overt displays of wealth.

A fellow member of the library board griped in the article: He has given, but not remotely what he could. A big capital campaign is coming up. We hope that hell give very generously.

In addition, Blackstone yesterday released details about Mr. Schwarzman’s income: He made $750 million combined in 2006 and 2007. Such high salaries are bound to trigger further criticism and more discussions of the lower tax rates often paid by private-equity chiefs.

It’s also unclear exactly what the terms of the gift are. Mr. Schwarzman made a proposed gift to Yale and required that the money be invested in Blackstone funds, according to the New Yorker. Yale’s response? Thanks, but no thanks.

Maybe Mr. Schwarzman is giving out of genuine concern for future library users. And whatever his motives, a $100 million gift will benefit the public. So on one level, we should all be grateful. Yet for a guy whos been defined more by his various homes, parties and outsized paydays, the library gift seems designed more to silence his public critics than to benefit the public good.