Finance

PJT Partners hikes junior salaries as boutiques edge ahead of larger rivals

PJT Partners has raised entry-level salaries for its London juniors to £70,000, putting the boutique among the highest paying banks in the City for analysts amid an ongoing battle for talent. 

The boutique, which was set up in 2014 by former Morgan Stanley dealmaker Paul Taubman, has increased first-year analyst salaries in London from £55,000 to £70,000, according to people familiar with the matter, while second years have gone from £60,000 to £80,000. In the US, starting salaries are $110,000, they added.

A PJT Partners spokesperson declined to comment.

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PJT’s junior starting salaries in the City have been matched only by Goldman Sachs and Perella Weinberg Partners, which both increased pay earlier this month following widespread raises among European and Wall Street rivals.

The pay rise shows a growing differential between various banks in the City as boutiques have topped many of their larger rivals over the past week, but also between London and New York as firms attempt to stem an exodus of junior talent.

The increases at Goldman, Perella and PJT are between nearly 30%-40%, higher than the 18% raises at the majority of investment banks, which have moved from entry-level salaries of $85,000 to $100,000 on Wall Street.

Barclays, Bank of America, Citigroup, Deutsche Bank, HSBC, JPMorgan, Lazard, Morgan Stanley, Nomura, Societe Generale and UBS have all raised first-year analyst salaries to $100,000 over the past two months.

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However, Goldman raised first-year analyst salaries to $110,000 on 2 August, with second-year pay going to $125,000 on Wall Street, and most boutiques have since beaten larger rivals.

Evercore leads the pack in the US, with first-year salaries rising to $120,000, according to Insider. However, in London, first-year salaries at the bank have risen to £63,000, according to two people familiar with the moves, £70,000 for second years and £75,000 for those in their third year, which means it lags some rivals.

PJT Partners has been successful in luring senior dealmakers from larger rivals since its establishment and now has over 750 employees globally. It made a record $447.4m in the first six months of the year amid a deal boom for investment banks that has brought in $60bn in fees, according to data provider Dealogic. 

Complaints from 13 Goldman Sachs analysts in March about working 100-hour weeks — as working-from-home restrictions and record deal flow have made an already brutal job more demanding — have sparked the latest changes. Some banks started out with one-time bonuses, while Jefferies offered analysts a Peloton and Houlihan Lokey its bankers a free luxury holiday. However, investment banks across the board have rolled out salary increases since June.

To contact the author of this story with feedback or news, email Paul Clarke

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