Issued June 17, 2008

Los Angeles - Worker and retiree advocates testified today about the structure and underperformance of the Lazard Mid-Cap fund, with $11 million in city money, and about the anti-worker policies at Lazard affiliated companies at a meeting of the Los Angeles Board of Deferred Compensation Administration.

 

Lazard has become a controversial player in the financial world over the last few years, charging high fees to clients, and bestowing large payouts to executives despite experiencing a large drop-off on return to investors. Lazard-related companies have also drawn scrutiny for poor service to consumers and treatment of workers. In fact, several bills were introduced recently in the California State Assembly in response to complaints about high rents and poor care at Atria assisted living facilities around the state owned by a Lazard-linked real estate group.

 

Prior to Lazard's regular presentation to the plan's board, Jojo Adeyemi, shared his experience as a hard-working dishwasher who was fired for attempting to speak out against poor pay and bad management at the Atria facility where he worked. "It is wrong that my co-workers and I should struggle so much, and Atria won't respect our right to organize a union,"Adeyemi said.

 

A plan participant also expressed his displeasure with the Los Angeles Deferred Compensation plan's continued involvement with Lazard, Inc. as an investment manager.

 

Later in the meeting, the Board of Los Angeles' Deferred Compensation Plan voted unanimously to study options for how to consider qualitative information like that presented by advocates today.

 

The managers of Los Angeles' Deferred Compensation plan called today's hearing to review its investment in Lazard, and has noted that the Lazard Mid-Cap fund is underperforming.