Evercore's average pay rose 30%, to $197k in a single quarter
Evercore didn’t have the best 2023. It didn’t look to be having the best start to 2024, either. But the boutique bank’s fate seems to be improving – finally.
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Evercore added 85 people to its headcount over the last year, from the end of Q2 2023 to the end of Q2 2024, bringing it from 2,245 to 2,330 - a 4% increase. Its compensation spending, however, was up a rather more impressive 36%.
Pay per head therefore shot up, from $151k per head last Q2 to $197k per head this one. Across the first half as a whole, pay per head went from $314k to $363k, a more modest (but still notable) 16% increase.
The money for the compensation increases came from a long-awaited bounce back in revenues. The boutique bank had a 38% increase in overall revenue quarter-on-quarter, and an 18% increase from the first half of 2023 to the first half of 2024. The increase was overwhelmingly driven by advisory (M&A) revenue, which increased 52% in Q2.
“We are in the midst of a gradual market recovery” CEO John Weinberg declared, while chairman Roger Altman credited the “strongest second quarter” net revenues to the “consistent expansion” in senior managing directors (SMDs).
Although Altman said senior managing directors made all the difference, the firm added just two in the second quarter, only one of which was in investment banking. The total SMD population at Evercore rose from 182 to 184 year-on-year, and SMDs in investment banking in particular went from 142 to 143, respectively.
The anticipated “exodus” from Lazard to Evercore, therefore, has yet to materialize. Or if it has, its been outweighed by bankers leaving Evercore from other offices. Lazard’s Q2 results, which are being announced tomorrow, might hold the answer.
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