Form 4: Lazard Director Opts for Equity Compensation

Lazard Director Stephen R. Howe Jr. elected to receive 74 Deferred Stock Units in lieu of cash compensation, aligning his interests with shareholders.

Summary

• Stephen R. Howe Jr., a Director at Lazard, Inc. (LAZ), acquired 74 Deferred Stock Units (DSUs) on August 15, 2025.
• These DSUs were received as part of an annual election under Lazard's 2018 Incentive Compensation Plan, as amended.
• The DSUs are in lieu of all or a portion of his cash compensation payable pursuant to the Non-Executive Director Compensation arrangement.
• Each DSU will convert into one share of Lazard Common Stock on a one-for-one basis following his resignation or cessation from the Board of Directors.
• Following this transaction, Mr. Howe beneficially owns a total of 10,232 Deferred Stock Units.

Sentiment

Score: 6

Explanation: Slightly positive. While a routine filing, the director's choice to take equity over cash demonstrates commitment and alignment with shareholder interests, which is generally viewed favorably.

Positives

• Director Stephen R. Howe Jr. elected to receive equity (Deferred Stock Units) instead of cash compensation, demonstrating strong alignment with shareholder interests.
• The acquisition of DSUs under the 2018 Incentive Compensation Plan reinforces the company's commitment to long-term equity-based incentives for its directors.

Negatives

• No specific negative financial or operational impacts are indicated by this routine insider transaction.

Risks

• No specific risks related to the company's operations or financial health are mentioned in this Form 4 filing. The filing pertains solely to an insider's compensation election.

Future Outlook

The 74 Deferred Stock Units acquired by Stephen R. Howe Jr. will convert into Lazard Common Stock on a one-for-one basis following his resignation or cessation from the Board of Directors.

Management Comments

• Stephen R. Howe Jr. made an annual election to receive Deferred Stock Units in lieu of cash compensation, aligning his incentives with the long-term performance of Lazard, Inc.

Industry Context

It is common practice for publicly traded companies, especially in the financial services sector like Lazard, to offer equity-based compensation, such as Deferred Stock Units, to their non-executive directors. This practice aims to align the interests of directors with those of shareholders, encouraging long-term value creation.

Comparison to Industry Standards

• Many financial institutions and investment banks, including peers like Goldman Sachs (GS) or Morgan Stanley (MS), utilize similar equity-based compensation structures for their non-executive directors to foster long-term alignment.
• The one-for-one conversion of DSUs to common stock upon board departure is a standard mechanism for deferred equity compensation in the industry.

Corporate Governance

Stakeholder Impact

• Shareholders: The election by a director to receive equity compensation instead of cash aligns their interests more closely with shareholders, potentially fostering a greater focus on long-term company performance and value creation.

Next Steps

• The Deferred Stock Units will convert into Lazard Common Stock upon Stephen R. Howe Jr.'s resignation or cessation from the Board of Directors.

Key Dates

Keywords

Lazard, LAZ, Stephen R. Howe Jr., Director Compensation, Deferred Stock Units, DSU, Insider Transaction, SEC Form 4, Equity Compensation, Corporate Governance