Which EB do MDs make the most?
Just signed an EB offer as a SA. Thinking of staying in banking my entire life and was curious if anyone had figures for which EB is known to pay the most for its MDs on average. I know this depends on the deal volume that they bring in, but any datapoints would be interesting.
Also, what is usually the base for MDs?
Nah bro. Non-publicly traded means more cash upfront i.e. no comp deferral which is good thing on one hand but on the other hand if you are at a place like PJT you have a clear upside if share price goes up by the time your comp is fully vested e.g. i think their share price went from $30 ish in 2018 to $70 ish now and you only pay tax on the realised upside (capital gains) which is like only 20% tax rate in the US i think.
Then you have places like Evercore where Senior MD (Partners) are on commissions basis and take home 25% of whatever fees they bring in - in other words could also be $0 but if you are good sky is the limit.
I know base for MD at Evercore NY is $500k not sure for the others.
You pay income tax on market value at vesting, not on the grant price. So if you get $100k of equity at grant date, 1 year vesting and the share price doubles at vesting, you still get taxed on $200k of income
Source: this is how my RSUs from a public EB are taxed
Bankers hate equity and prefer cash comp though..
Isn’t $500k really low for guaranteed comp for the skill set the MD has?
Im going to give you the benefit of the doubt because youre clearly new to the industry, but the answer is FT Partners by a mile.
No shit?
Just should not even be a question as an SA. Who the fuck knows where IB will even be in 15 years or whenever you hit MD. Great to have a long term mindset but better to focus on the short term obstacles needed to get there first. Once you hit VP that is a question you should begin to ask.
Would you mind elaborating? How does their comp work. Thought founder brought in all the deals
The comp of an MD depends on 3 basic factors: (more but for the sake of simplicity kept it at 3)
1. How many deals (fees) did you bring in.
2. How well did your group perform
3. How did your bank perform
All of these depend not only on your but where you work which is why it is so difficult to precisely say how much an MD actually makes.
Much more dependent on being a top producing MD in a good group. Your base is pretty much set, and your bonus is determined by deals you close. all EBs pay well or MDs would just leave
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Yes, everyone knows that to be a good MD, you shouldn't be worried about generating fees and comp.
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Hard to answer as there are few data points and many are opaque (i.e. an MD won’t be going around saying how much they made).
This being said, I have heard GHL & EVR pay the most. Although I personally believe that for most, their payday comes when they are poached from one bank to the other, regardless of name. A top MD at PJT would need to get a pretty sweet deal from EVR to move and viceversa
Heard Allen & Co pays 30% of fees to deal head.
SVBL. They took a few rainmakers from Gugg that brought in billion dollar HC service deals. I assume they pay near the top of the street for MDs who have a historic track record of making a killing at a boutique vs. a full service bank.
Not a big SVBL homer like some of their analysts on here but definitely a great place to be it seems at the senior level.
Edit: Clearly hurt one of the insecure SVBL analysts on here.
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