I don't work at a BB so am curious to hear what the average revenue per MD is in good profitable groups. Guess it's sort of a vague question and may vary but there must be a yardstick to which an MD is judged as "good." I was thinking maybe $5m/MD but some deals with $20m+ fees may bring that number up?
Also, converted to revenue per head per group (including down to analysts), if anyone has an idea as to what a good revenue figure is, would be curious to know.
-Ben
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between $5 million and $10 million per deal
much more in credit inflated bull years
you say $5-10m per deal but what about per year? I get some mega deals will bring in $20m+ but barring those deals in any given year, what revenue numbers are MDs expected to put up?
Much of this depends on how groups credit revenue. At bulge brackets, an M&A banker can get some revenue credit for a Lev Fin deal they did no work on if they demonstrate that their client relationship was important to winning that business. Additionally, some MDs talk in terms of total revenues from deals they have done where others look at only their pro rata share.
Realistically, I think if you assigned each MD a proper "share" of revenue produced I think something in the $10mm ballpark is right on par.
i think on average in my group, the mds bring in about 10-25MM in revenue each (not necessary one MD taking deal credit per deal however)
the issue is that there's a pretty big vol, there are some that get maybe 3-8MM, and some that are doing 50-75MM easy...
http://online.wsj.com/article/SB123612736445024231.html
"Last year, Mr. Orcel generated annual revenue of $550 million, up 45% from 2007, according to people close to him. Annual revenue of $25 million is considered excellent by Wall Street bankers."
I think during 2007 $10 million was average at the top M&A boutiques.
Managing Director Review Targets (Originally Posted: 10/27/2012)
Hi Experienced WSO Readers,
I have a question about Managing Director Revenue Targets. Let’s say the person is the MD of the Gaming Group at a typical BB Banks.
1-On average how much new business does a MD have to bring in per year (I understand it differs from group-to-group) but what is a good ballpark figure for a given sector (real estate, oil/gas, FIG, etc) 2-How much of an MD’s bonus is pegged to them hitting their targets? 3-What’s the ratio to base vs bonus
Thanks for the help!
And please no retarded answers.
Thanks, Raj
I was about to give you a smart ass answer but since you asked so nicely...
Oh and by the way Rajy-boy, get out of the habit of using the word "retarded." Have you ever used that word in a conversation only to find out that the person you a talking to has a child or a sibling that is handicapped? That is not a good situation to be in. You can thank me later.
Lighten up...even 50-year old MDs call things "retarded." The word in its most frequent usage is so far removed from that meaning.
Why do you care? Planning on become an MD soon?
They probably give him a revenue/salary ratio to shoot for. The salary would be that of the whole group working for him. I'm guessing it's somewhere around 3-5x salary or so.
Raj, I thought you're in jail?
everyone uses the word retarded, same with gay, its so far removed from its original meaning it doesnt mean shit.
if you start crying like a little girl when someone swears just stay the fk out of this industry, you really won't get far.
IIRC avg rev number for MDs is around $6-8m but my memory is vague this may be somewhat off the mark.
well that got out of hand quickly
How much do average MD's, Dir, Generate in annual fees (Originally Posted: 10/03/2011)
Product group such as LevFin? Trying to get an idea of rev generated per person.
In straight fees? I'd say $50mm - $100mm at a bulge bracket
so if i were an MD at a BB and wanted to take my clients to go set up my own shop (hire a bunch of back-office people etc) and arrange LBO loans for a fee, i could potentially bring in $100mm/yr in fees?
Or would customers not be interested, because the loans come directly from the bank (the bank with the big balance sheet) and not the banker?
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