Evercore is the latest bank to report its second quarter results today. They're not bad, but they're not that good either. Revenues are down 8% year-on-year and although compensation spending is up, it's not up by as much as might be expected given higher headcount.
Evercore spent $819m on compensation in the first six months of 2022, up 2% on last year. However, headcount rose 12% to 2,135 people over the same period, with the result that average pay per head fell from $423k in the first six months of last year to $383k this year. At current accrual rates, Evercore is therefore on track to pay $767k per head for 2022. This puts it roughly in line with PJT Partners, which reported yesterday and is on a trajectory to pay $738k.
It's possible that lower pay per head reflects disproportionate hiring of new junior bankers, but Evercore has also been adding senior staff. Of the 235 net additions to headcount in the past year, 25 were senior managing directors in the investment banking business. Three senior MDs (Herb Yeh, Chris Buddin and Jason Fournier) joined in Q2. Another two have committed to join.
The H1B salary database puts analyst salaries at Evercore in New York City at $100k+, associate salaries at $160k and VP salaries at $260k. Bonuses are paid in addition to this.
Evercore has been strengthening its advisory team in Europe. It said today that European fees were a significant contributor to second quarter advisory revenues. Evercore's advisory revenues globally were up 3% in the second quarter; underwriting revenues were down 72%.
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