Which breed of M&A banker is on track for the biggest bonus hike this year? If fees are an indicator of payouts, people working at large banks should see the heftiest increases. But those working on deals valued between $100 million and $500 million could be in for a shock.
Figures from Thomson Financial show bankers working on the biggest deals saw the biggest increase in their fees in the first half of 2006. According to Thomson, the money earned on deals worth over $500 million more than doubled between January and June, to $4.2 billion. That's up from $1.8 billionn in the first half of 2005.
Fees earned on the smallest deals, of $100 million or less, also put in an acceptable showing, rising 13 percenter to $4.5 billion.
But fees for mid-market deals, those worth between $100 million and $500 million, fell 4 percent during the six months ending June 30.
Thus, bonuses look perky for M&A types at the bigger banks, who typically work on the largest deals, and for employees of small boutiques, who typically work on the smallest. But payouts for those working on mid-sized deals may suffer.
M&A professionals at the likes of Fortis, Rothschild and the Big Four accounting firms have been warned...