Lazard Ltd Completes Conversion to a U.S. C-Corporation and Is Renamed Lazard, Inc.

Rhea-AI Summary

Lazard, Inc. (NYSE: LAZ) has completed its conversion from a publicly traded partnership to a U.S. C-Corporation under Delaware Law and changed its name from Lazard Ltd to Lazard, Inc., effective January 1, 2024. Shareholders will now receive dividends for U.S. tax purposes, and a final Schedule K-1 will be issued to shareholders of record in 2023 in March 2024. Peter R. Orszag, CEO of Lazard, emphasized the benefits of the conversion, including expanding the shareholder base, simplifying tax reporting, and enhancing trading liquidity.

Insights

Tax Expert

The transition of Lazard from a publicly traded partnership to a C-Corporation represents a significant shift in its tax structure. This change simplifies the tax reporting process for investors, as they will now receive a Form 1099-DIV instead of a Schedule K-1, which is generally more complex and requires more detailed tax treatment. The shift to dividend distributions could potentially attract a broader range of investors, particularly those who prefer the straightforward tax implications of dividends. Furthermore, the move may result in changes to the after-tax income for shareholders, as corporate dividends may be taxed differently than income received from a partnership.

Financial Analyst

From a financial standpoint, Lazard's conversion to a C-Corporation could have a notable impact on its stock liquidity and market valuation. C-Corporations often have an easier time attracting institutional investors, which can lead to increased trading volumes and potentially a more stable share price. Additionally, the simplification of tax reporting might also appeal to retail investors. However, investors should consider the potential for double taxation, where earnings are taxed at both the corporate level and upon distribution as dividends. This could affect the company's net income distribution and should be factored into investment decisions.

Market Research Analyst

Examining the broader market implications, Lazard's conversion aligns with a trend where companies transition to C-Corporate status to gain access to a wider investor base. The move could be interpreted as a strategic play to enhance shareholder value and corporate governance. By adopting a more conventional corporate structure, Lazard may also be positioning itself for future growth initiatives, including mergers and acquisitions, by leveraging the preferential corporate tax rates and regulatory environment of a C-Corporation. Stakeholders should monitor the company's performance post-conversion to assess the long-term impact of these structural changes on its competitive positioning within the financial services industry.

NEW YORK--(BUSINESS WIRE)-- Lazard, Inc. (NYSE: LAZ) announced today that it has completed its previously announced conversion from a publicly traded partnership to a U.S. C-Corporation under Delaware Law and changed its name from Lazard Ltd to Lazard, Inc., effective January 1, 2024.

As a result of the conversion, distributions will generally be dividends for U.S. tax purposes, and shareholders will receive a Form 1099-DIV. Lazard shareholders of record in 2023 will receive a final Schedule K-1 in March 2024.

Peter R. Orszag, Chief Executive Officer of Lazard, said: “We are pleased to complete our conversion to a U.S. corporation. We believe this structure will expand our shareholder base by simplifying tax reporting and enhancing trading liquidity. This conversion also underscores our commitment to our broader plan to deliver long-term value for our shareholders.”

For more information about the conversion, please visit the FAQs and Conversion/Tax Information section of the Investor Relations website at www.lazard.com.

About Lazard
Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240102859176/en/

Media:

Shannon Houston, +1 212 632 6880

shannon.houston@lazard.com

Investor:

Alexandra Deignan, +1 212 632 6886

alexandra.deignan@lazard.com

Source: Lazard, Inc.

FAQ

What is the recent announcement from Lazard, Inc. (NYSE: LAZ)?

Lazard, Inc. (NYSE: LAZ) has completed its conversion from a publicly traded partnership to a U.S. C-Corporation under Delaware Law and changed its name from Lazard Ltd to Lazard, Inc, effective January 1, 2024.

What are the implications of the conversion for Lazard, Inc. (NYSE: LAZ) shareholders?

Shareholders will now receive dividends for U.S. tax purposes, and a final Schedule K-1 will be issued to shareholders of record in 2023 in March 2024.

Who is the CEO of Lazard, Inc. (NYSE: LAZ)?

Peter R. Orszag is the CEO of Lazard, Inc.

How will the conversion benefit Lazard, Inc. (NYSE: LAZ) shareholders?

The conversion is expected to expand the shareholder base, simplify tax reporting, and enhance trading liquidity.

What is the ticker symbol for Lazard, Inc.?

The ticker symbol for Lazard, Inc. is NYSE: LAZ.