I know one MD at a LMM shop last year brought in about $3-4mm for himself. Another young MD in the MM world (word of mouth from a friend) is poised to make 8 figures this year. I think my MD at a BB is probably right around the $3m mark (honestly I do not know though).
Just curious if anyone else is willing to share.
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I don’t see how you’ll get many useful answers to this. You admit you have no idea on your MD but still throw out the $3mm number. I’m guessing most analysts and associates have 0 insight into their MD’s comp, it’s not like they are running around sharing that info. If you asked people on my team, I imagine you’d get a range from 50%-200% of what I make.
I mean, I have a pretty good guess based on backing into the fees generated and accredited to my MD. Now my guess is that he gets xx% (obviously varies on deal type) of those fees and that's what he earns. The other two numbers I can confirm to 80% accuracy. So figured, I would ask and see if there are any interesting answers.
The % they take varies too much and I’m guessing you won’t get anything too different from all the publicly available info. I understand wanting to hear stories, etc, I just see so many of these “how much does X earn” posts, unless there is an interesting story, you probably won’t get much.
It’s hard to tell when your MD’s daily car is a fucking Toyota Sienna.
Damn you work for Dollar Bill? I thought he was in L/S HF?
Based and traditional family pilled
Oversized Parking for Sienna in the city is like 1k a month.
These numbers are always super ambiguous but if I had to estimate ~$2.0mm-$2.5mm (top group at BB, huge deal volume).
As far as the young MD earning 8 figures- I'm not saying its impossible but I have to highly doubt that figure. I'm not claiming to be an expert on the economics of fee revenues, but likely they would have to be the lead banker on multiple top-50 deals this year.
Correct me if I'm wrong here?
No, I have seen the fee structures with my own eyes on one of the deals, The shop had two baked in step ups and hit them both, making the fee much larger than it normally would be. Then being at a MM he gets a generous portion of that +40%. I was very skeptical at first too until my friend showed me.
Friend says MD is poised to bring in more than 20m and will either be right under 8 or above 8 figures. I will say that this MD has done very well in their sector this year. And this feat may not be to repeatable year in and year out.
Don't want to say to much more/ going to be vague as to try and not out anyone.
Me personally, 14 days after that check hit we'd be having my retirement party.
Idk man, my MD brought home a $400-500k+ payday on a $50mm deal. These are relatively small deals but if the shop is a lean one with low headcount I could easily see an MD at a boutique making over $1mm+. You don't have to work on the biggest deals at the most prestigious shops to make lots of money, it just comes down to firm economics.
At a MM shop and my MD told me when he was absolutely hammered that he made $1.5 last year. My VP was there too (weird culture between the three of us), and he thinks the MD will make $2.5mm this year
Any shop with a direct drive structure will have MDs that do exceptionally well. It's a self-selecting phenomenon though, if you're just an average MD, you're going to want to be at a BB and lean on corporate credit / s&t / research to help generate ancil revenue.
Direct drive structure?
LMM Boutique, 4 man shop (3 analysts + MD), ~200M-500M total transaction value this year, mostly equity and debt raise with a few M&A. Based on our fees that would bring in ~10M(rough estimate. Have access to exact terms but too lazy).Retainers more or less cover all our data(CapIq & Pitchbook) + Our TC (Lower end of street, 3 Analyst Shop) + Rent, Utils, Etc.So he prolly made around the fees
That's the dream if you can pull it off as a senior banker. Run your own shop even if it's smaller deals and pull in millions.
Haha Yeah. MD generally only works like 30 hrs a week in office too.
How did your MD get to where he is today? What was his background?
Pretty much started off the stereotypical route. GS/MS/JPM IB (idk which group), then exited to do some AM Stuff, lateraled back to senior level at a strong mm bank(not HW/Jeff level but high up there) than eventually just started his own boutique.
He has a chill life.
Nice home in nice area, goes boating and fishing frequently, business comes to him via connections and references, and isnt too anal about pitchbooks and stuff.
Outdated as it’s pre crisis, but here is the comp for VP+ at Lehman from 2007.
https://jenner.com/lehman/docs/LARRY%20WIESENECK/LW%2000893-00927.pdf
looks like some SVPs broke 1mil back then. Wouldn’t happen now though.
Damn. Puts a lot in perspective.
A lot of equity comp that was worthless in 12 months. Wonder what the vesting looked like.
Comp definitely lower post GFC, but I'd stay still plausible for a SVP to break 1mm.
Maybe 1% paid that much
"banking is a cyclical business-- we've been through challenging years before and we'll get through this one as well." LMAO rip
How much MD comp at BB is deferred comp, and what is a typical vesting schedule? I think GS vests over 3-4 years, and has a 4-5 year holding period or something?
Varies materially by bank. My shop is ~30% of everything >$400k is deferred over 4 years and vests ratably.
Wow. So it takes 7-8 years to fully collect your bonus at the MD level?
Managing Partner has his own private jet, among many other things, I can't say with certainty how much he makes. What I do know is that he clears at least $4-5M per year.
Side note: I work at a boutique shop with only 15 employees (so just remember that it's not just BB where MDs are raking in substantial compensation). Other MDs at my firm average between $600k to $1.5M all-in.
Ducera?
MD in my group made $500k base and $1mm bonus during a normal comp year (pre 2020) in a product group
My MD (EB) isn't exactly a rainmaker, he told us during happy hour that he was on track to make 4.3MM this year
Are all MDs at Evercore previous rainmakers at BB / current rainmakers? Are their average joes at Evercore.
I read somewhere that all banks only have like 1 or 2 rainmakers
https://www.wallstreetoasis.com/forums/md-ibd-comp
Even no name boutiques can be lucrative. Back in college I was at a middle market boutique, I believe it was structured as a draw and then 33-67% of fee revenue. With the Modern Double Lehman for fee structure you can do well selling small companies, sell a $15MM EV company for instance and you’d get $730k.
The formula is 10% of the first million, 9% of the second million, so on and so forth and 3% above 7MM. Selling 4 $25MM companies a year could net an MD somewhere between 1.3 and 2.75.
Oh yeah local boutiques can rake in cash
At my boutique, the originating MD takes 50% of total fees and the rest gets distributed among partners and opex. We have a rough spreadsheet where we keep track of fees and MD takedown per deal, and so far YTD 2021 (starting in Jan) our highest performing MD (who is also a partner) has made roughly $55mm before partner split. Lowest paid MD made $3mm.
Damn Dude that is crazy.
What type of boutique? EB, industry boutique, regional boutique?
fucking hell
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