Lazard’s longtime chief executive Ken Jacobs is expected to leave his position at the independent investment bank and hand over the reins to his deputy Peter Orszag, people briefed on the matter said.
His pending departure comes weeks after Lazard announced it would cut more than 300 employees, a tenth of its workforce, following a deep deal slump that Jacobs has told analysts could last until 2024. Will remain
Jacobs acknowledged that his earlier optimism about a deal rebound was misplaced due to an uncertain economic environment. Between 2019 and 2022, the firm’s managing director roster is set to grow from 163 to 212.
Jacobs had long insisted that the areas in which Lazard worked — deal advice and asset management — were the two best businesses on Wall Street, but both have slumped in recent years.
Its multi-storey M&A franchise has come under pressure from US upstarts such as Centerview Partners, Evercore and PJT Partners, which became highly successful after the financial crisis when larger firms were increasingly comfortable hiring boutique banks for lucrative assignments .
Europe’s economic faltering following the continent’s debt crisis more than a decade ago has also hurt Lazard’s businesses.
The competitive challenges come amid the departures of star Rainmakers including Antonio Weiss, Gary Parr and Matthew Pigasse. Meanwhile, Lazard’s money management business has been hit by a shift in asset flows to passive investment funds.
Lazard’s share price is down nearly a fifth this year and is trading just above its 2005 initial public offering price.
Orszag, a prominent economist who served in the Obama administration, joined Lazard in 2016 after a stint at Citigroup and led Lazard’s investment banking arm.
Jacobs is widely credited with steering the notoriously fractious firm after the death of then-famous chief Bruce Wasserstein in 2009. The recession that followed the Great Financial Crisis had left the bank, which was heavily indebted, in a financially vulnerable position.
“One of the most consequential responsibilities of any board is ensuring a smooth transition of leadership. We have had a succession plan in place for quite some time and our plan is on track,” said Richard Parsons, chief director of Lazard. .
The firm declined to comment further on Jacobs’ impending departure, which was first reported by The Wall Street Journal.
Jacobs joined Lazard from Goldman Sachs as a mid-level banker in the 1990s and as one of the top dealmakers on Wall Street before becoming Wasserstein’s top deputy in 2001, joining during a time of internal turmoil. established himself.











