PJT Partners cut its bankers' pay in spite of a record year
After a good Q3, Q2, and Q1, PJT Partners have posted their Q4 results. And believe it or not, things were pretty good for the boutique.
Whilst the big banks on Wall Street fought for bragging rights by posting the smallest possible losses in a difficult year – of which Bank of America “won” by only posting a 45% decline in revenues – PJT noted an 8% increase in revenue for the full year 2022 vs 2021, something that even other boutiques such as Evercore and Lazard couldn't manage.
The bank’s headcount increased by 9% throughout the year. Using the end of 2021 headcount – 833 – to estimate what the bank’s current headcount gives a range between 904 and 912, assuming the growth rate “x” can be identified as 8.5% ≤ x < 9.5%.
With total compensation only increasing by 4.5%, from $640m in total to $669m, this indicates that PJT paid out anywhere between $734k and $740k per head. A fine pay day, no doubt, but less than the 2021 per capita pay figure of $768k.
Interestingly, we noted that PJT had a headcount of 913 at the end of Q3 – and the range suggested by today’s results means that the bank has discarded at least some of its staff in the last three months. The number of partners at the firm also increased, from 91 to 98.
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