Evan Bayh Joins Apollo Global Management and Five Corporate Boards After Senate

Former Senator Evan Bayh (D-IN) joined private equity giant Apollo Global Management as a senior adviser and McGuireWoods as a strategic advisor immediately after leaving the Senate in January 2011. Within months, Bayh also secured positions on five corporate boards: Marathon Petroleum, Berry Plastics Group, Fifth Third Bancorp, RLJ Lodging Trust, and McGraw Hill Education. These positions would generate nearly $4 million in compensation over the following five years, transforming Bayh’s net worth from his Senate salary to between $13.9 million and $48 million, according to financial disclosures.

Senate Career and Private Sector Preparation

Bayh served as a U.S. Senator from Indiana from 1999 to 2011, establishing himself as a centrist Democrat with close ties to business interests. He announced in February 2010 that he would not seek reelection, giving him a full year to cultivate private sector opportunities while still a sitting senator. Reports later revealed that Bayh spent much of his final year in the Senate positioning himself for corporate employment, taking meetings with potential employers and building relationships that would pay dividends after his departure. His Senate positions included the Banking Committee, Armed Services Committee, and Intelligence Committee—expertise highly valued by corporate clients.

Apollo Global Management and Carried Interest Protection

Bayh’s relationship with Apollo Global Management raised particular ethical concerns due to his June 2010 vote—while still in the Senate—that helped kill a proposed tax increase on private equity carried interest. Carried interest allows private equity managers to pay capital gains tax rates (typically 20%) instead of ordinary income rates (up to 37%) on management fees, saving the industry billions annually. Just months after protecting this lucrative tax loophole, Bayh joined Apollo as a senior adviser, creating the appearance that his Senate vote directly benefited his future employer. Apollo co-founder Leon Black personally recruited Bayh, recognizing the value of having a former senator with banking and finance expertise on the firm’s team.

Corporate Board Accumulation

Bayh’s strategy of accumulating multiple corporate directorships exemplified how former senators maximize post-government income. Each board position typically paid $200,000-400,000 annually, allowing Bayh to earn far more than his $174,000 Senate salary without the appearance of direct lobbying. Marathon Petroleum, one of the nation’s largest oil refiners, particularly valued Bayh’s energy policy expertise. Berry Plastics Corp. appointed Bayh to its board in October 2011, just nine months after he left the Senate. These positions required minimal time commitment—typically a dozen meetings yearly—while providing access to Bayh’s political intelligence and Washington connections.

Significance

Bayh’s post-Senate career illustrated the financial incentives that drive congressional decision-making even before lawmakers officially leave office. His vote protecting private equity tax loopholes, followed by immediate employment with a private equity firm, demonstrated how deferred compensation shapes legislative behavior. The corporate board strategy proved particularly insidious because it avoided direct lobbying registration requirements while still monetizing political influence. Bayh’s accumulation of five simultaneous board positions revealed how former senators could create diversified income portfolios based entirely on their government service. His case showed that the revolving door extended beyond lobbying firms to include the broader corporate ecosystem—private equity, oil, plastics, banking, education, and hospitality—all seeking to purchase access to political expertise and connections. The dramatic increase in Bayh’s wealth—from a modest Senate salary to tens of millions—made explicit the financial rewards awaiting lawmakers who maintain friendly relationships with corporate interests throughout their government service.