BGC Buys Back 16.4M Shares from Former CEO Lutnick for $151M
BGC Group, Inc. has announced a major share repurchase involving more than 16.4 million Class A common shares from Howard W. Lutnick. It complies with Lutnick’s U.S. government ethics agreement, following his transition to the role of United States Secretary of Commerce. Lutnick previously served as BGC’s Chairman and CEO.
Details of the Share Repurchase
BGC has agreed to repurchase 16,452,850 Class A common shares directly from Howard W. Lutnick. The company will pay $9.2082 per share. This price equals the volume weighted average price (VWAP) on May 14th, 15th, and 16th, 2025. The total cost of the repurchase is $151,501,133. The company is funding the buyback from its available capital.
Lutnick’s Compliance and Divestment
Howard W. Lutnick is divesting his financial interest in BGC as part of his government ethics obligations. The sale of 16,115,102 shares will close today. Another 337,748 shares held in retirement accounts will be sold after Cantor Fitzgerald completes its pending transactions. In addition, Lutnick has agreed to sell 8,973,721 Class B shares to Cantor Fitzgerald. He will forgo all economic benefits from BGC effective May 16, 2025. These steps remove his ownership, voting, and financial interests in the company.
Cantor Fitzgerald Ownership Transition
Lutnick is transferring his ownership in Cantor Fitzgerald to trusts set up for his children. Brandon Lutnick will be the controlling trustee. It will take effect after receiving required regulatory approvals. It is expected in the third quarter of 2025. Cantor Fitzgerald will continue to be BGC’s largest and controlling shareholder.
About BGC Group, Inc.
BGC Group, Inc. is a financial services company. It provides brokerage and technology services to various financial markets. BGC operates as a financial brokerage. It offers products, like government bonds, corporate bonds, interest rate derivatives, credit derivatives, equities, energy, and commodities. The company provides services including trade execution, clearing, and market data.
Summing Up
The buyback finalizes Lutnick’s departure from corporate roles in alignment with ethics commitments. BGC maintains stability through Cantor Fitzgerald’s continued control.
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