Prominent European investment bank, Lazard, is announcing a major expansion and management shift to reflect the intent of the recent merger of its houses in New York, London, Paris and continental Europe.

“From today we will be one firm,” said Bruce Wasserstein, the head of Lazard, whose term began today. Lazard indicated that it expects to make a dozen partner hirings in the United States over the next six months. It intends to expand in Europe by hiring a limited number of additional partners in the U.K. and France and launching a major expansion in the rest of continental Europe.

Gerardo Braggiotti will spearhead the European expansion plan. “Lazard is now the leading quality advice firm in Europe and we want to reinforce that position. We have a 154-year tradition of excellence and we will build on that base,” Braggiotti said.

“Despite the recession, the timing is right for this program at Lazard,” said Wasserstein. “We are now positioned for steady growth.” The mission of the new team is to reflect the global expertise of Lazard while retaining the diversity of its deep national roots. “We have the finest team of international bankers,” said Marcus Agius, chairman of Lazard London, “and we all believe that great advice is always in high demand.”

To make this concept a reality many of the preexisting profit allocation systems separating Lazard units are being eliminated and procedures are being put in place for quicker recognition of superior performance by individuals.

The firm has also rejigged its compensation scheme. Shares of permanent equity in the firm have been allocated to the partners primarily based on future contribution. An allocation has been reserved for new hires, too. The shares are subject to a vesting period.