This asset manager has been on a recruiting spree over the past few months. Here’s why that matters.
| From the desk of Miles Everson: Hi! I am elated to share another business insight in this edition of “Return Driven Strategy (RDS).” If you aren't familiar with it, RDS is a pyramid-based framework comprising 11 tenets and 3 foundations. When correctly implemented, these principles enable businesses to attain high levels of performance. Today, we will talk about an investment management firm, and why it’s been scooping up talent left and right. Curious? Keep reading below. |
Lazard, an investment banking and asset management firm, has spent the past several months recruiting executives from some of the most respected names in finance. The reason? The firm is rebuilding its investment arm, and it seems like it wants to make big swings as can be seen in the pedigree of people it has hired thus far. TP Enders, a Goldman Sachs veteran of over 20 years, will lead product strategy in a newly created role. With his extensive experience shaping portfolios, he’s positioned to help Lazard expand its investment offerings. Christopher Bricker, who spent more than three decades at AllianceBernstein, will oversee corporate development and strategic growth. He'll guide acquisitions, partnerships, and other growth initiatives. Both additions are part of a broader leadership overhaul under Lazard Asset Management CEO Chris Hogbin. Since taking charge in December, Hogbin has also hired a former Treasury Department official as the division's first chief investment officer, a former Morgan Stanley executive as chief operating officer, and a Neuberger Berman veteran as the first head of the AI division. You see, hiring talent in Wall Street isn’t an easy feat. Recruiting established executives, bankers, dealmakers, and the staff they need is one thing, but compensating them is another. In fact, Lazard’s payroll-to-revenue ratio soared to nearly 70% during the first quarter of 2026. For comparison, the industry benchmark sits at 60%. Remuneration for bankers and executives could cost millions of dollars… but why did Lazard pull the trigger on its hunt for talent? The simple answer is that investment management is a business whose results are driven primarily by human capital.
Photo from Unsplash According to Professor Joel Litman , Chairman and CEO of Valens Research and Chief Investment Officer of Altimetry Financial Research: “Intellectual property and scale don't matter as much as the professionals who are doing the work.” This is because success in the investment management field depends on choosing the right investments and building long-lasting client relationships.That makes experienced leadership especially valuable. An investment manager can shortcut years of development by hiring executives who already understand product strategy and institutional clients. Lazard's latest brings years of experience across portfolio oversight, operations, government policy, and AI. This influx of talent is arriving while Lazard's investment arm is already seeing momentum. The unit oversees roughly USD 285 billion in client assets. It recently reported record assets under management and USD 7.4 billion of inflows in the first half of 2026. Not only was this Lazard's strongest first half result in almost 20 years, but it was achieved even as clients pulled USD 1.4 billion from the business in May 2026. Professor Litman says Hogbin wants to build off of that momentum by prioritizing areas where active managers can earn an edge through politics, regulation, and local market knowledge. He also wants to expand Lazard's presence in fixed income, alternative investments, and wealth management. Each of those markets requires experienced professionals with deep connections and proven track records. In short, Lazard is assembling a team that can drive strong results, even if it means footing a huge payroll bill. Lazard’s talent hunt is also best viewed through the lens of Return Driven Strategy ’s (RDS) 9th tenet: Engage Employees and Others. According to Professor Litman and Dr. Mark L. Frigo in the book, “Driven” , when hiring talent, it’s important to: “First determine what types of offerings will be needed and for what customers, followed by hiring the right types of employees and engaging them in ways that promote the building of those offerings.” Lazard wanted to bolster its investment management arm, that’s why it recruited the talent needed to achieve the business goals and power the growth of that business. Sure, the firm’s compensation bill grew as a result, but it was a necessary expense, given its growth potential. This story points to an important lesson: Growing a business requires investing in the right people, even if doing so could potentially cost big amounts of money . After all, a company is only as good as the talent it hires. Without the right people, a business cannot serve its customers properly, deliver strong returns, scale, and compete against bigger rivals. — If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you found this week’s insights interesting and helpful. Stay tuned for next Tuesday’s Return Driven Strategy! Imagine a company where at one point, it looked like the ultimate corporate success story… Learn more about Tyco International in next week’s article! |
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
