Lutnick Divests Cantor Fitzgerald Stake to Family Trusts

U.S. Commerce Secretary Howard Lutnick has divested his stake in Cantor Fitzgerald, a prominent Wall Street firm he led for over three decades. This move is part of a broader divestment plan to comply with federal ethics requirements tied to his new role in the government. Lutnick has agreed to transfer his stake in Cantor Fitzgerald to his children and a group of investors, effectively ending his direct involvement with the company.

The divestment includes the transfer of Lutnick's entire ownership in Cantor Fitzgerald to family trusts, which will benefit his sons, Brandon G. Lutnick, the current Chairman and CEO of Cantor Fitzgerald, 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.

This divestment is a significant step for Lutnick, who has been a key figure in the financial industry for many years. His decision to transfer ownership to his children ensures that the legacy of Cantor Fitzgerald continues under family leadership. The move also underscores the importance of adhering to ethical guidelines for public officials, ensuring that personal financial interests do not conflict with their public service roles.