WSJ Defends Lazard’s Bermuda Move
An American public services union which criticised one of its pension advisory firms for incorporating in a Bermuda is being lambasted for faulty logic in a “Wall Street Journal” editorial..
The leading financial newspaper says the American Federation of State, County & Municipal Employees’ (Afscme) pension plan recently wrote to Bermuda-incorporated Lazard Ltd. questioning the company’s decision to domicile on the island.
“The pension, which invests in Lazard stock, cites the company’s Bermuda incorporation and risks that US tax authorities may ‘challenge; the company’s tax status,” says the newspaper.
“It asks Lazard to make an annual report to shareholders about the ‘risks created by the actions Lazard takes to avoid or minimise US federal, state and local corporate income taxes’ …
“Really? Lazard is looking after its shareholders by pursuing the most efficient tax strategies it can, as do most publicly listed firms. US-based companies are punished with some of the highest corporate tax burdens in the world. Not so in Bermuda. So when Lazard went public in 2005, it opted to base its operations in the lower tax jurisdiction. That was good for shareholders like the Afscme pension plan, which means it is also good for the union’s workers.”
Lazard is one of the world’s preeminent financial advisory and asset management firms. The firm, which has roots dating back to 1848, operates from 41 cities across 26 countries in North America, Europe, Asia, Australia, Central and South America.
Lazard provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments, and individuals.
