Form 4: Lazard Director Peter Harrison Awarded Deferred Stock Units as Part of Compensation Plan

Lazard, Inc. Director Peter Harrison was awarded 3,992 Deferred Stock Units as part of his non-executive director compensation, increasing his beneficial ownership to 4,892 DSUs.

Summary

• Peter Harrison, a Director of Lazard, Inc. (LAZ), was awarded 3,992 Deferred Stock Units (DSUs) on June 2, 2025.
• These DSUs were granted under Lazard, Inc.'s 2018 Incentive Compensation Plan, as amended, specifically as part of the Non-Executive Director Compensation arrangement.
• Each DSU will convert into one share of Lazard Common Stock on a one-for-one basis upon Mr. Harrison's resignation from, or cessation of membership on, the Board of Directors.
• Following this transaction, Mr. Harrison's total beneficial ownership of DSUs increased to 4,892 units.

Sentiment

Score: 7

Explanation: The filing reports a routine equity compensation award to a director, which is a positive sign of aligned interests between management and shareholders, without indicating any negative operational or financial news. It's a standard, expected transaction.

Positives

• The award of Deferred Stock Units to Director Peter Harrison aligns his interests with those of shareholders, as the value of the DSUs is directly tied to the company's stock performance.
• This compensation structure is part of Lazard's established 2018 Incentive Compensation Plan, indicating adherence to a structured and transparent corporate governance framework for director remuneration.

Negatives

• No specific negative points are identified in this Form 4 filing, as it primarily reports a routine equity compensation award to a director.

Risks

• This Form 4 filing does not disclose specific risks related to Lazard, Inc.'s operations or financial performance, as its primary purpose is to report changes in beneficial ownership of securities by an insider.

Future Outlook

The Deferred Stock Units awarded to Peter Harrison will convert into Lazard Common Stock on a one-for-one basis following the date he resigns from, or otherwise ceases to be a member of, the Board of Directors of Lazard, Inc.

Management Comments

• No direct management comments or quotes are provided in this Form 4 filing, as it is a transactional report detailing changes in beneficial ownership.

Industry Context

The award of Deferred Stock Units to a non-executive director is a common and widely accepted practice in the financial services industry, particularly among investment banking and asset management firms. This form of equity compensation is designed to align the long-term interests of directors with those of the company's shareholders, promoting sustained value creation.

Comparison to Industry Standards

• The use of Deferred Stock Units as a component of non-executive director compensation is a standard practice among publicly traded financial advisory and asset management firms, including peers such as Evercore Inc. and Moelis & Company.
• This compensation mechanism aligns with corporate governance best practices by linking director incentives directly to the company's long-term stock performance, similar to how many global financial institutions structure their executive and director remuneration.

Corporate Governance

Related Party Transactions

• The award of 3,992 Deferred Stock Units to Peter Harrison, a Director of Lazard, Inc., constitutes a related party transaction as it involves compensation provided to a member of the company's Board of Directors under an established compensation plan.

Stakeholder Impact

• Shareholders: The equity award to a director helps align the director's long-term interests with those of the shareholders, potentially fostering decisions that enhance shareholder value.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this specific filing, as it pertains solely to director compensation.

Next Steps

• The Deferred Stock Units will convert into Common Stock upon Peter Harrison's departure from the Board of Directors of Lazard, Inc.

Key Dates

Recommendation

Keywords

Lazard, LAZ, Peter Harrison, Deferred Stock Units, DSU, Director Compensation, SEC Form 4, Insider Transaction, Equity Award, Corporate Governance