The eagle-eyed types at the WSJ’s Deal Journal blog have spotted something that should give Lazard investors pause for thought – the tremendous expenses related to paying stock awards to the late, great Bruce Wasserstein.
As Deal Journal reported on Wednesday, emphasis ours:
The investment bank said this morning that it expects to take a one time charge of $86.5 million in the fourth quarter related to expenses of paying restricted stock unit awards to the late CEO Bruce Wasserstein.
To put that charge in perspective, consider that the firm generated $124.7 million in M&A advisory revenue in the third quarter and $119 million in restructuring fees. The charge for Wasserstein’s stock awards, which vest 30 days after his death on Oct. 14, equals nearly 70% of the entire firm’s quarterly advisory revenue. And advising fees don’t come easily these days, with deal flow at the lowest levels in recent memory.
Yowza.
Related links:
Banker who brought tactical savvy to M&A – FT
Bruce Wasserstein’s top deals – FT
Still waiting for the Wasserstein masterstroke – FT Alphaville (2007)