Investment bankers everywhere benefited from last year's frenetic deal activity, but bankers at boutique firms may have benefited more than most. Evercore reported its fourth quarter results today. In doing so, it revealed that pay per head for 2021 was close to seven figures on an average basis.
Evercore employed 1,950 people in 2021, and as Financial News reported, it paid them an average of $948k each. This was 26% more than its average compensation of $755k per head for 2020.
Evercore has also been hiring. It added 150 people in total last year and increased its senior managing director headcount by seven people to 154. Pay rose after revenues increased 43% year-on-year in 2021, with advisory revenues rising by 57% to their highest level ever. Evercore said today that both bonuses and salaries were up for 2021, following August salary increases in which raised salaries for its analysts and associates to some of the highest in the industry.
Evercore's revelation of pay increases comes after yesterday's results from PJT Partners, which showed average compensation at the rival boutique firm falling from $912k to $770k on lower restructuring revenues. However, PJT CEO Paul Taubman said the firm is committed to paying competitively, and that restructuring revenues will increase in future as companies struggle to refinance due to, "increasing stress building in the system."
M&A revenues are likely to be lower in 2022 than 2021, said Taubman, although they will still be elevated by "historic standards." He added that PJT plans to focus on 2022 hiring on its strategic advisory business, which works across M&A and areas like capital markets advisory, with recruitment particularly likely in Europe where there are "enormous opportunities" for PJT to grow its presence.
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