BGC Group is buying back more than 16 million shares
from its former Chairman and CEO, Howard W. Lutnick, now the U.S. Secretary of
Commerce. The $151 million deal is part of Lutnick’s full
divestment from the company, prompted by federal ethics requirements tied to
his new Cabinet role.
Share Sale Signals Full Separation
BGC Group, a global brokerage and fintech services
provider, has announced it would repurchase 16,452,850 shares of its Class A common
stock from Lutnick at $9.2082 per share.
The price represents the three-day volume-weighted
average from May 14 to 16, 2025. The company will pay an aggregate of
approximately $151.5 million for the shares.
BGC Group $BGC Agrees To Repurchase Over 16.4M Shares Of BGC Class A Common Stock Beneficially Owned By Howard W. Lutnick, United States Secretary Of Commerce, Company’s Former Chairman And CEO pic.twitter.com/X12K5pZkKf
— IPO MARKET WATCH (@watch_ipo) May 19, 2025
The move is tied to Lutnick’s U.S. government ethics
agreement, which mandates the unwinding of personal financial interests that
could pose conflicts in his public service role.
“Repurchasing more than 16.4 million of our shares
demonstrates our commitment to shareholder capital return,” commented Jason
Hauf, Chief Financial Officer at BGC.
“Given our record first quarter results and
anticipated strong cash flow generation this year, we believe buying back our
shares in this highly efficient manner is a great use of our capital that
delivers strong value creation to our shareholders.”
Cantor Fitzgerald to Absorb Remaining Stakes
In addition to the BGC shares, Lutnick plans to
transfer his entire ownership in Cantor Fitzgerald to family trusts. These will
benefit his sons, Brandon G. Lutnick, Cantor Fitzgerald’s current Chairman and
CEO, Kyle S. Lutnick, Executive Vice Chairman, and other adult children.
Brandon Lutnick will act as the controlling trustee. The
sale of 16,115,102 shares closed immediately, while an additional 337,748
shares in retirement accounts will transfer after regulatory approvals for the
Cantor Fitzgerald transactions, expected in Q3 2025.
Lutnick also agreed to sell his 8,973,721 BGC Class B
shares to Cantor Fitzgerald, further consolidating control under the firm. This
transaction will also close post-approval.
Effective May 16, Lutnick will forgo all economic
benefits in BGC, including voting rights and financial gains. This completely separates him from the company he once led and aligns with federal ethics
protocols.
Following Lutnick’s departure, the Nasdaq-listed company named John Abularrage, JP Aubin, and Sean Windeatt as Co-Chief Executive Officers. The company also brought Brandon Lutnick, the son of the newly appointed Commerce Secretary, to join the Board of Directors.
BGC Group is buying back more than 16 million shares
from its former Chairman and CEO, Howard W. Lutnick, now the U.S. Secretary of
Commerce. The $151 million deal is part of Lutnick’s full
divestment from the company, prompted by federal ethics requirements tied to
his new Cabinet role.
Share Sale Signals Full Separation
BGC Group, a global brokerage and fintech services
provider, has announced it would repurchase 16,452,850 shares of its Class A common
stock from Lutnick at $9.2082 per share.
The price represents the three-day volume-weighted
average from May 14 to 16, 2025. The company will pay an aggregate of
approximately $151.5 million for the shares.
BGC Group $BGC Agrees To Repurchase Over 16.4M Shares Of BGC Class A Common Stock Beneficially Owned By Howard W. Lutnick, United States Secretary Of Commerce, Company’s Former Chairman And CEO pic.twitter.com/X12K5pZkKf
— IPO MARKET WATCH (@watch_ipo) May 19, 2025
The move is tied to Lutnick’s U.S. government ethics
agreement, which mandates the unwinding of personal financial interests that
could pose conflicts in his public service role.
“Repurchasing more than 16.4 million of our shares
demonstrates our commitment to shareholder capital return,” commented Jason
Hauf, Chief Financial Officer at BGC.
“Given our record first quarter results and
anticipated strong cash flow generation this year, we believe buying back our
shares in this highly efficient manner is a great use of our capital that
delivers strong value creation to our shareholders.”
Cantor Fitzgerald to Absorb Remaining Stakes
In addition to the BGC shares, Lutnick plans to
transfer his entire ownership in Cantor Fitzgerald to family trusts. These will
benefit his sons, Brandon G. Lutnick, Cantor Fitzgerald’s current Chairman and
CEO, Kyle S. Lutnick, Executive Vice Chairman, and other adult children.
Brandon Lutnick will act as the controlling trustee. The
sale of 16,115,102 shares closed immediately, while an additional 337,748
shares in retirement accounts will transfer after regulatory approvals for the
Cantor Fitzgerald transactions, expected in Q3 2025.
Lutnick also agreed to sell his 8,973,721 BGC Class B
shares to Cantor Fitzgerald, further consolidating control under the firm. This
transaction will also close post-approval.
Effective May 16, Lutnick will forgo all economic
benefits in BGC, including voting rights and financial gains. This completely separates him from the company he once led and aligns with federal ethics
protocols.
Following Lutnick’s departure, the Nasdaq-listed company named John Abularrage, JP Aubin, and Sean Windeatt as Co-Chief Executive Officers. The company also brought Brandon Lutnick, the son of the newly appointed Commerce Secretary, to join the Board of Directors.
