Lazard’s incoming CEO Peter Orszag has his eyes set on doubling earnings by 2030, according to a memo reported by Bloomberg, Financial Times and Reuters.
Orszag plans to boost performance in Lazard’s investment-banking and asset-management businesses after he takes the company reins in October, stepping up from his role of the past four years as CEO of financial advisory.
“The growth in advisory will require a combination of higher productivity,” which the firm will achieve, in part, with more managing directors on staff, Orszag wrote in the memo, addressed to the firm’s 3,000-plus staffers, according to Bloomberg. “Expanding the number of managing directors will come not only from our historical strength in developing our own high-quality bankers, but also from hiring productive bankers laterally – and then onboarding them effectively.”
Per Orszag’s memo, as reported by Financial Times, the investment bank will pursue annual total shareholder returns between 10% and 15% until 2030 ends, thus doubling its current annual revenue.
After 175 years in business, "[i]t is time for Lazard to aim higher,” he said, according to Reuters.
Orszag’s tenure at Lazard has included stints as North American M&A chief and global co-chief of health care, as well as vice chairman of investment banking. In 2009 and 2010, he was a director of the U.S. Office of Management and Budget, which assists the president in overseeing the creation of the federal budget and evaluates the efficacy of agency programs, policies and procedures.
His growth declaration comes just months after Lazard eliminated 10% of its workforce to mitigate business stressors amidst the year’s deal-making slump felt industry-wide. Other firms, including Goldman Sachs and Barclays, have made similar cuts.
Thursday’s memo also announced the tapping of two executives, with Orszag noting the firm’s financial advisory chief operating officer Alexandra Soto will take over as company COO; and Chris Weideman will join the firm as general counsel from a similar position at Apollo Global Management.
The firm’s advisory businesses in the U.S., Europe, Middle East, and Africa all have growth potential, according to Orszag’s memo.
"Part of Lazard’s DNA is this ability to move across sectors and provide guidance not only to CEOs, but presidents and prime ministers," he wrote, according to Reuters. "It's one of the reasons why we will be hired by companies -- that has only become more potent in the current environment. You can’t make a business decision today without a view on the geopolitics and the regulatory situation."
