Lazard Gains a 5% Rise in Revenue
Leading investment bank Lazard reported a 5% increase in revenue during the second quarter, even as corporations all over the globe are experiencing economic turmoil. Helmed by CEO and Chairman Bruce Wasserstein, the private equity firm reportedly gained $64.6 million in net income for the second quarter, resulting to a total of $467.4 million in revenue.
The firm’s success may be because they prevent huge losses that have decreased the sales in rival companies such as Merrill Lynch and the now-defunct Lehman Brothers. The dealmakers of Lazard reported a 37% rise in income for the second quarter, as corporate buyers remained solid on keeping their deals.
Just recently, Bruce Wasserstein renewed his contract with Lazard. He signed a 5-year contract to remain as the chairman and CEO of Lazard, with a base salary of $900,000 per year. Wasserstein’s leadership qualities have apparently impressed the executives of Lazard, as the firm’s fourth quarter also showed a considerable gain.
During the quarter, Lazard closed in on deals such as China Investment Corporation’s $5.6 billion purchase of a stake in Morgan Stanley, and Bear Stearns’s $1.4 billion sale to JPMorgan Chase. The firm only earns its advisory fees once the deal is closed.
Bruce Wasserstein currently helms Lazard and the firm is still continuing its other major business, which is controlling asset managements. This raked in $178.8 million in net income for the second quarter.
