© Reuters. FILE PHOTO: FILE PHOTO: The logo and trading information for Lazard Ltd appear on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 24, 2019. REUTERS/Brendan McDermid

By Anirban Sen

NEW YORK (Reuters) -Lazard Ltd Chief Executive Officer Ken Jacobs is expected to step down from his role and be replaced by Peter Orszag, who currently runs the investment bank’s advisory unit, a person familiar with the matter said on Thursday.

Lazard (NYSE:) lead director Richard Parsons (NYSE:) declined to provide details of the succession plan in a statement. “We have a succession plan that we have had in place for quite some time and our plan is on track,” he said.

Lazard’s stock, which has lost about 17% this year, rose 2.2% in extended trading.

The investment bank reported a surprise loss in the first quarter as dealmaking slumped. Jacobs warned at the time that the outlook was uncertain for the rest of the year and said the bank would eliminate around 10% of its workforce.

The appetite for mergers and acquisitions has soured in recent months amid volatility in the capital markets, geopolitical tensions and rising interest rates.

Investment banking units at large Wall Street firms have cut bonuses and laid off staff in recent months as stock market listings stalled and companies slamming the breaks on deals.

Rivals Goldman Sachs Group Inc (NYSE:) and Morgan Stanley (NYSE:) have also reduced headcount as higher interest rates stymied client activity and weigh on investor sentiment.

The Wall Street Journal first reported on the succession.

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