Lazard Ltd, one of the world’s leading investment banks, is set to undergo a leadership change. Ken Jacobs, the current CEO, is expected to step down and be replaced by Peter Orszag, who currently runs the bank’s advisory unit. The move comes as the bank has seen a slump in dealmaking due to volatility in the capital markets, geopolitical tensions and rising interest rates.
Lazard’s stock rose 2.2% in extended trading following the news. The bank has also cut 10% of its workforce in response to the downturn. Rivals Goldman Sachs and Morgan Stanley have also reduced headcount as higher interest rates stymied client activity and weighed on investor sentiment.
The succession plan has been in place for some time and is now on track, according to lead director Richard Parsons. With the new leadership in place, Lazard is hoping to turn around its fortunes and capitalize on the current market conditions.