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In his time as UK secretary of state for business, enterprise and regulatory reform, Lord Mandelson sometimes found it necessary to castigate investment bankers with sharp words, once attacking then Barclays Capital chief executive Bob Diamond for deriving "unacceptable and quite obscene earnings" from work that consisted of merely "making deals, not building businesses" and with none of the virtues of true entrepreneurship. But Lord Mandelson is not one to hold grudges and within a year of this attack has become an investment banker himself of a sort, as a senior adviser to Lazard. The firm expects Mandelson to do roughly one day’s work a week for his undisclosed annual fee. "He’s not a full-time employee, but this is a proper job," says a Lazard source. "This firm doesn’t make ceremonial appointments. He’ll role up his sleeves, attend meetings, deal directly with clients at times."
Before making the offer, Lazard’s UK chief, William Rucker, had plenty of opportunity to observe Mandelson in action at close quarters. Lazard advised US acquirer Kraft on its contentious takeover of Cadbury last year. Mandelson warned the US firm against stripping the assets of the UK company or cutting UK jobs.