Lazard Goes Ahead of Other Investment Banks
Even though Lazard did not do as well as hoped in the first half of 2007, last January 2008, the investment bank — which is helmed by CEO and chairman Bruce Wasserstein — reportedly had a 43% increase in profit during its fourth quarter. For the full year, the international corporation earned $322.7 million, which is 37% higher than their income in 2006. For the fourth quarter alone, they earned $122.6 million in net income. While other investment banks are having a hard time, Lazard still managed to reclaim their history as a preeminent financial advisor.
In the same month, Bruce Wasserstein recently renewed his contract with Lazard, as it was almost set to expire. He signed for a 5-year term with a base salary of $900,000 and restricted stock worth $96.3 million. Bruce Wasserstein’s management have apparently impressed Lazard’s board, as they agreed to allow the 60-year old dealmaker to renew his contract. Yet in a surprise move, Bruce Wasserstein agreed to forfeit his salary until Lazard fully weathers the financial crisis.
At that moment, the bank has shown a credible fourth quarter, with Bruce Wasserstein still heading the corporation. The expected raise in shares was because the firm was more reliant on deal advisory fees than most of its rival banks.
