Boutique investment bank PJT Partners has increased pay for traders this year, even as bigger rivals have started to cut back.
The investment bank started by former Morgan Stanley investment banker Paul Taubman in 2015 spent $309.8 million on compensation in the first half of 2022, up 8% from the same period last year. last year.
In the first quarter, PJT Partners’ compensation costs rose 19% to $159.2 million. The bank said this was down to improved performance, with advisory income down 5% compared to the previous year.
However, the last three months have shown signs of slowing down. Advisory revenue was $186.6 million in the second quarter, down 6%, and compensation costs were down 2%.
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Bigger rivals have made deeper cuts to compensation as the boom in the record $130 billion 2021 deal has slowed. Goldman Sachs has cut compensation costs by 31% to $7.7 billion in the first six months of 2022, despite a hiring spree over the past year that has seen the number of employees increase by more than 6,000. Meanwhile, Morgan Stanley cut its institutional securities unit payout by 21% in the second quarter.
“Our record six-month revenue reflects the unique depth and breadth of our franchise and highlights our ability to navigate challenging market environments,” Taubman said in a statement. “In these uncertain times, customers are increasingly recognizing our differentiated knowledge and experience, as well as our broad capabilities. As before, we remain confident in our future growth prospects.”
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