Alexandra Soto
LazardAbout Alexandra Soto
Alexandra Soto, 56, is Lazard’s Chief Operating Officer (COO) since October 2023, after serving as Group Executive, Human Capital and Workplace Innovation (from June 2019), Global COO of Financial Advisory (from July 2018), and previously COO of Lazard Europe Financial Advisory and Lazard Paris Financial Advisory; she joined Lazard in 1993 after Morgan Stanley and has been a Managing Director since 2001 . In 2024 Lazard delivered adjusted net revenue of $2,890 million (+18% YoY), adjusted net income of $244 million and adjusted diluted EPS of $2.34, alongside a 55% TSR, which informed incentive decisions across NEOs including Soto . She sits on the Supervisory Board of Metro AG, contributing external governance experience .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lazard, Inc. and Lazard Group | Chief Operating Officer | Oct 2023–present | Oversight of firm-wide operations; focus on operating leverage, process simplification, GenAI adoption, culture, and Financial Advisory contributions |
| Lazard, Inc. and Lazard Group | Group Executive, Human Capital and Workplace Innovation | Jun 2019–Oct 2023 | Led human capital and workplace innovation during strategic transition |
| Lazard (Financial Advisory) | Global COO of Financial Advisory | Jul 2018–Jun 2019 | Global operational leadership of FA business |
| Lazard Europe Financial Advisory | Chief Operating Officer | Jan 2006–Jul 2018 | Regional operational leadership across Europe FA |
| Lazard Paris Financial Advisory | Chief Operating Officer | Oct 2009–Aug 2013 | Country-level operational leadership |
| Morgan Stanley | Professional | Pre-1993 | Investment banking experience prior to Lazard |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Metro AG | Supervisory Board Member | Current | External public company board role |
Fixed Compensation
| Year | Base Salary ($) |
|---|---|
| 2023 | $750,000 |
| 2024 | $750,000 |
Performance Compensation
| Year | Metric | Target | Actual/Payout | Vesting |
|---|---|---|---|---|
| 2024 | Total Incentive Compensation Mix | n/a | ~$7.0M, of which RSUs $5.27M (68%) and cash bonus $1.73M (22%) | RSUs vest over ~3 years; cash paid Feb 2025 |
| 2023 | Total Incentive Compensation Mix | n/a | ~$4.25M, of which RSUs 69% and cash bonus 16% | RSUs vest over ~3 years; cash paid Feb 2024 |
| 2021 PRSU Cycle (awarded Mar 2022 in respect of 2021) | Aggregate PRSU performance score | 1.00x | 1.78x; 110,638 PRSUs included and vested Mar 13, 2025 | Performance-based; service condition waived post retirement eligibility; covenants apply |
2024 Grants of Plan-Based Awards (Soto)
| Grant Date | Award Type | Number of RSUs | Grant Date Fair Value ($) | Vesting Date |
|---|---|---|---|---|
| Feb 8, 2024 | RSUs | 87,408 | $3,413,282 | On/around Mar 1, 2027 |
2024 Stock Vested (Soto)
| Shares Vested | Value Realized on Vesting ($) |
|---|---|
| 76,003 | $2,929,156 |
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership (Mar 10, 2025) | 251,766 shares; <1% beneficially owned; footnote notes net share settlement reported on Form 4 on Mar 17, 2025 |
| Unvested Time-Based Awards (FY-end 2024) | 152,984 RSUs/PIPRs; market value $7,875,616 (based on $51.48 close) |
| Unvested Performance Awards (FY-end 2024) | 110,638 PRSUs; payout value $5,695,644 |
| Scheduled Time-Based Vesting | 61,599 RSUs vest Mar 2, 2026; 91,385 RSUs vest Mar 1, 2027 |
| Ownership Guidelines | NEOs must hold ≥3x base salary; compliance: all NEOs exceed or are on track; unearned performance awards excluded from calculation |
| Hedging/Pledging | Anti-hedging policy prohibits hedging and short sales for executive officers; no pledging disclosure found in proxy |
Employment Terms
| Term | Key Provisions |
|---|---|
| Agreement Type | Amended and restated retention agreement as of Mar 7, 2024 (reflecting promotion to COO in 2023) |
| Termination Notice | Generally terminable upon three months’ notice |
| Severance (Qualifying Termination, pre-CIC) | Lump sum: accrued salary; earned/unpaid bonuses; Prorated Average Bonus for prior two years; plus severance equal to 22.5 months base salary + 2x average annual bonus (not prorated) |
| Severance (Non-renewal Good Reason) | Reduced to 10.5 months base salary + 1x average annual bonus |
| Local Law Cash (UK) | Additional payment equal to 50% of the greater of monthly base salary or average gross monthly base salary for: 3 months (qualifying termination) or 6 months (other termination), subject to restrictive covenant compliance |
| Benefits Continuation | Eligible for benefit programs of the type made available to Managing Directors in London (U.S. NEOs generally receive medical/dental continuation aligned to severance multiple) |
| Equity Treatment | Resignation for “good reason” treated as termination without “cause” for equity/LFI awards; retirement-eligible NEOs (Soto eligible as of Oct 21, 2024) may retire without forfeiting LFIs, PIPRs, PRPUs (excl. Stock Price PRPUs) or PRSUs, subject to performance and restrictive covenants; Stock Price PRPUs forfeited if unvested |
| Non-Compete & Non-Solicit | Non-compete 6 months post-termination (3 months if termination by company without “cause” or by NEO for “good reason”); Non-solicit of employees for 9 months post-termination; restrictions on entering competing agreements during 3-month notice period |
Potential Payments Upon Termination/Change in Control (as of Dec 31, 2024; $51.48 stock price assumption)
| Scenario | Severance Payment ($) | RSU/PRSU/LFI Vesting ($) | Pro-rata Annual Incentive ($) | Salary in Lieu of Notice ($) |
|---|---|---|---|---|
| Death/Disability (pre-CIC) | — | $17,445,816 | $4,250,000 | — |
| Involuntary Termination Without Cause (pre-CIC) | $10,000,000 | $17,445,816 | $4,250,000 | $187,500 |
| Resignation for Good Reason (pre-CIC) | $10,000,000 | $17,445,816 | $4,250,000 | — |
| Retirement (pre-CIC) | — | $17,445,816 | — | — |
| No Termination (on/after CIC) | — | — | — | — |
| Death/Disability (on/after CIC) | — | $17,445,816 | $4,250,000 | — |
| Involuntary Termination Without Cause (on/after CIC) | $10,000,000 | $17,445,816 | $4,250,000 | $187,500 |
| Resignation for Good Reason (on/after CIC) | $10,000,000 | $17,445,816 | $4,250,000 | — |
| Retirement (on/after CIC) | — | $17,445,816 | — | — |
Other Compensation Elements and Policies (Alignment/Risk Controls)
- Clawbacks: Board may recover compensation based on financial results or operating metrics achieved through intentional fraudulent or illegal conduct; Dodd-Frank-compliant clawback for erroneously awarded incentive-based pay adopted .
- Options: Company does not currently grant stock options or similar option-like instruments .
- Perquisites & Pension: 2024 “All Other Compensation” for Soto included $47,327 payment in lieu of pension, $2,139 for tax preparation services; UK-defined contribution pension scheme eligibility .
Performance & Track Record
- 2024 Contributions: Increased operating leverage via process simplification; accelerated GenAI tools; strengthened commercial and collegial culture; important contributions to Financial Advisory transactions .
- 2023 Contributions: Managed transition from Human Capital & Workplace Innovation into COO; leveraged financial services experience to enhance operations; workplace status; FA transaction contributions .
- Company Outcomes: Adjusted net revenue up 18%; adjusted diluted EPS rose to $2.34; strong adjusted net income; $303M capital returned to shareholders, including dividends and repurchases; 2024 TSR 55% .
Compensation Structure Analysis
- Mix shift and scale: Soto’s awarded total compensation rose from $5.0M in 2023 to $7.75M in 2024, with equity-based RSUs dominating her incentive mix (68–69% of total incentive) indicating high alignment to multi-year stock performance and retention .
- Performance awards: Legacy PRSU program for 2021 cycle paid at 1.78x in early 2025; time-based RSUs granted in 2024 vest in 2027, anchoring retention .
- Risk controls: Anti-hedging, clawbacks, and stock ownership guidelines (3x salary) mitigate misalignment and promote long-term shareholder outcomes; no option grants reduce repricing risk .
Equity Ownership & Alignment Details
| Item | 2024/2025 Data |
|---|---|
| Beneficial Ownership | 251,766 shares; <1% |
| 2024 Unvested Time-Based | 152,984 RSUs/PIPRs; $7,875,616 value |
| 2024 Unvested Performance-Based | 110,638 PRSUs; $5,695,644 value |
| 2024 Vested | 76,003 shares; $2,929,156 realized |
| Upcoming Key Vest Dates | 61,599 RSUs on Mar 2, 2026; 91,385 RSUs on Mar 1, 2027 |
| Ownership Guidelines | ≥3x base salary; compliance on track/exceeded |
| Hedging/Pledging | Hedging prohibited; no pledging disclosure found |
Employment Terms (Contractual)
- Notice and Renewal: Agreements terminable with three months’ notice; non-renewal triggers modified severance terms .
- Non-Compete/Solicit: 6-month non-compete (3 months for certain qualifying terminations); 9-month non-solicit of employees; restrictions during 3-month notice period on entering competing agreements .
- UK Local Law Payments: Additional 50% monthly base measure for 3 or 6 months depending on termination type, contingent on covenant compliance .
Investment Implications
- Alignment: High equity weighting via RSUs and performance PRSUs ties compensation to share price and firm performance; ownership guidelines and anti-hedging policy further align interests .
- Retention vs. Selling Pressure: Retirement eligibility (as of Oct 21, 2024) removes service-based vesting for PRSUs (covenants still apply), and substantial scheduled RSU vesting in 2026–2027 could create periodic selling pressure; note Form 4 activity in March 2025 related to net share settlement .
- Pay-for-Performance Signals: 2024 performance uplifts and 55% TSR support equity award realizability; watch future RSU vest events and any changes in RSU grant cadence as operating leverage initiatives and GenAI adoption progress .
- Downside/Red Flags: No evidence of pledging; no options and no repricing noted; severance economics include significant cash multiples and UK local law enhancements—monitor optics and potential shareholder feedback in future proxies .