Evercore slogged through a fairly difficult first quarter where net profits declined by 30%, mainly due to an overall slowdown within its chief investment banking business. Advisory and underwriter fees each fell by double digits year-on-year, leading to an 11% decline in compensation and benefit costs within its investment bank. But don’t feel too sorry for anyone over at Evercore. Average pay per head during Q1 still remained a healthy $143k – on pace to hit almost $600k for the year even if recent struggles continue.
Known as one of the best payers on the Street, Evercore showed exactly why during a turbulent first quarter. The compensation ratio within the investment bank actually increased from 59.4% to 59.6% year-on-year, despite the drop in revenue and profit. As Financial News points out, Evercore M&A bankers actually gained market share during the quarter when some rivals struggled even worse. The bank’s advisory business moved from 12th to 8th in Dealogic’s global league table for the first quarter.
All-in-all, Evercore took care of its bankers as the 11% decline in compensation fell short of the 14% drop in investment banking revenue. They know where their bread is buttered.
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