BGC Group (NASDAQ: BGC) announced a major leadership overhaul as Howard Lutnick, its longtime Chairman and Chief Executive Officer, steps down following his confirmation as the 41st U.S. Secretary of Commerce by the Senate.

BGC's Lutnick Named Commerce Secretary as Firm Names Three CEOs

The $4.5 billion financial technology and brokerage firm named John Abularrage, JP Aubin, and Sean Windeatt as Co-Chief Executive Officers.

The leadership transition brings a new chapter for BGC, which has grown into the world's most valuable wholesale financial services intermediary under Lutnick's leadership, with more than 4,000 employees and annual revenues exceeding $2.25 billion.

"The Board and I have complete confidence in their ability to manage and operate the Company, as I step into my new role in public service," Lutnick said in a statement regarding his successors.

The three newly appointed co-CEOs have collectively overseen BGC's day-to-day operations and helped shape its corporate strategy as Co-Global Heads of Brokerage. Under their joint leadership, the company has achieved double-digit revenue growth and record revenues in 2024.

New Chairman

In the meantime, the company appointed Stephen Merkel as Chairman of the Board of Directors.

Merkel, who will retain his roles as Executive Vice President and General Counsel, has been with BGC since its founding and has served as one of Lutnick's closest advisors for more than three decades.

“I am honored and humbled by both Howard’s recommendation and the Board’s appointment,” said Merkel. “I am excited to continue working alongside the Board and John, JP, and Sean to drive the Company’s strategic vision forward. We are immensely grateful for Howard’s unwavering support for our employees, clients, and community over the past four decades and have no doubt the American people will benefit from his invaluable expertise.”

The company also announced that Brandon Lutnick, the son of the newly appointed Commerce Secretary, will join the Board of Directors.

Legacy and Transition

To comply with government ethics rules, Howard Lutnick has agreed to divest his interests in BGC, though the company specified this process would not involve selling shares on the open market.

Lutnick's career began at Cantor Fitzgerald in 1983, spanning multiple decades of market evolution and organizational change. Following the September 11, 2001 events that impacted the firm's New York operations with the loss of 658 employees, Lutnick established the Cantor Fitzgerald Relief Fund. The initiative provided $180 million in support to families affected by the tragedy.

The leadership transition marks a pivotal moment for both parties involved. As Lutnick prepares to assume his role in the Commerce Department, BGC Group moves forward with its newly appointed executive team, signaling an organizational shift for the financial technology and brokerage firm.

Source: Finance Magnates