When Paul Taubman quit Morgan Stanley to go it alone in 2012, it was widely presumed to be because he felt aggrieved at not getting the top job: Morgan Stanley had only recently promoted rival Colm Kelleher instead to run its securities division, and Taubman had been overlooked. Now that he’s running his own company, Taubman seems to be doing his best to keep his staff happy – in terms of paying them well, at least.
The latest accounts for PJT Partners (UK), the London operation of Traubman’s PJT Partners boutique, shows Traubman employed 107 people last year and spent nearly £51m on wages and salaries – suggesting average compensation of around £475k ($636k) per head for the year ending December 2016. PJT is thought to employ around 350 people globally and set aside $183m for compensation in the first half of 2017, suggesting compensation this year may be higher still.
Rising pay could be a trend. Compensation at PJT in London appears to have doubled for 2016. In 2015, average pay per head was “just” £175k. That same year, the highest paid director £1.7m, which rose to £3m a year later. This was probably Traubman himself, but could have been a fellow partner like, maybe, Johannes Groeller (also ex-Morgan Stanley), or Martin Gudgeon (ex-Blackrock).
PJT Partners pays less than rival boutiques like Qatalyst partners, but is a much larger operation. Formed from a merger of Taubman’s PJT Capital and Blackstone’s investment banking division in 2015, the London office generated revenues of £49m the following year, but made an operating loss of £18m due to what it describes as the trials of, “being a new company in a competitive business environment.”
After combining with Blackstone, PJT Partners houses a wide variety of partners (many of them, unsurprisingly, from Blackstone). A core eight of the firm’s 60 global partners are drawn from Morgan Stanley, however. In February 2017, PJT hired Emmanuel Gueroult, a former Morgan Stanley executive of 22 years. PJT’s most recent hire in London was William Ford, a Durham University graduate who joined its analyst class in August.
PJT’s London accounts help explain how it is that boutiques often pay so much (compared to banks): around 70% of its staff are revenue generators and just 30% are in admin.