Evercore — a small but powerful Wall Street investment bank— has rolled out a new promotion program for its junior staffers, Insider has learned.
In an email sent to its US advisory staff on February 9, two HR executives at Evercore said that analysts who opt to stay at the bank "long-term" can be promoted to an associate position six months early and collect $70,000 in promotion bonuses — in addition to base salary and performance compensation.
The rollout is meant to incentivize juniors to stay at the bank, according to the email sent by Randi Brown and Neha Patel.
"In an effort to retain more of our excellent Analysts for long-term careers at Evercore, we are pleased to announce our new Senior Analyst and Associate 1 promotion process for US Advisory, which provides the option for an accelerated path to Associate 1 promotion," read the memo.
Evercore declined to comment for this story. The firm, which was started in 1995, has about 2,000 employees across 11 global offices, and has been paying junior bankers a base salary of $120,000. In 2022 it was the seventh largest in M&A fees, according to the Financial Times, and it was among the top-rated firms for experience satisfaction by junior bankers in a 2021 survey Insider previously reported on.
Until now, an analyst at Evercore had to spend three years in the lowest rungs of investment banking before becoming an associate, a Wall Street title that typically comes with more responsibility —and money. Evercore's analyst program previously required two years as an analyst and one year as a senior analyst.
Now, second-year analysts who are eligible for promotion and commit to Evercore "long term" could see their third year cut in half, according to the memo.
In addition to the bigger title and salary bump, they will also be rewarded with a $50,000 promotion bonus on top of the $20,000 bonus they will have gotten months earlier for being promoted to senior analyst.
It's unclear how long junior bankers are expected to stay with the firm after being promoted to associate. The definition of "long-term" wasn't specified in the email, and broadly speaking, associates are typically in their roles for several years before getting promoted further.
Here's a breakdown of Evercore's new promotion process, including its eligibility requirements and bonus pay details, which has been transcribed in this chart verbatim from the internal email that went out on February 9. Going forward, analysts can be promoted via one of the two tracks below, the memo said:
Promotion Tracks
| Senior Analyst | Senior Analyst / Associate 1 |
Eligibility | - Job lined up for end of third year / Not committed to IB long-term
- Performance not in line with early promotion
| - Committed to IB / EVR long-term
- Performance in line with early promotion
|
Timeline | - Nominated in Fall or Spring of 2nd year
- Promotion takes effect July 1st for 12 months
| - Nominated in Fall or Spring of 2nd year
- Senior Analyst promotion takes effect July 1st for 6 months
- Associate 1 promotion takes effect the following January for 1 year
|
Promotion Bonus | - $20,000 paid within 60 days of receipt of signed promotion letter
| Senior Analyst - $20,000 paid within 60 days of receipt of signed promotion letter
Associate 1 - $50,000 paid in April following Associate 1 promotion
|
Performance Bonus | - Participate in legacy mid-year comp process and receive full-year Senior Analyst bonus in August
| Senior Analyst - Stub bonus paid in March for the Senior Analyst period July- December
Associate 1 - Associate 1 full-year bonus paid the following March
|
It's quietly understood at most firms that after two years, many investment banking analystsaspire to move on to greener pastures — literally. They can make more money in private equity or hedge funds, if they can manage to get an offer, and the hours tend to be (slightly) less demoralizing.
Evercore's program appears to be an effort to counteract that, especially as Wall Street banks experience their worst layoffs since the Great Recession while private equity firms remain flush with cash.
At the same time, boutique banks tend to be more supportive of this migration than their bulge bracket counterparts, in part because they don't have as much room for upward mobility. But it can be expensive to lose talented juniors. One person familiar with the announcement said Evercore's program might be a way to save resources on recruiting. It's easier to promote analysts who are already at the firm, the person explained, because the more that stay, the less time and money has to be spent on finding associates externally.
Only current second-year analysts are eligible for the new "accelerated path." If accepted, the participants would spend July through December as senior analysts, then become associates as of January 1, 2024.
For those who are already third-year analysts and on track to become associates this summer, the email said that Evercore will revisit the matter. "We will continue to assess current Senior Analysts eligibility for promotion to Associate 1 this July."
The email said there would be more details to come when they "formally roll out the next round of the promotion process later this month," noting that "promotion decisions will be made by Advisory leadership and factors such as analyst performance, firm headcount and group headcount will be considered."
FAQs
In an email sent to its US advisory staff on February 9, two HR executives at Evercore said that analysts who opt to stay at the bank "long-term" can be promoted to an associate position six months early and collect $70,000 in promotion bonuses — in addition to base salary and performance compensation.
What is the average bonus at Evercore? ›
The actual average hours worked per week at Evercore based on our data is actually 73 hours, which would bring down the true effective hourly rate to $27 on average. If you include the average bonus of $75,000, then the total average pay at Evercore would be $171,000 per year or $49 per hour at the 73 hour work week.
What is so special about Evercore? ›
Evercore is widely regarded as the leading shareholder activism and raid defense advisor in the world. Our Strategic, Defense & Shareholder Advisory team works closely with clients on matters related to complex M&A, board advisory, corporate governance and activism and hostile and unsolicited activity.
What is the base salary at Evercore? ›
The average Evercore Partners salary ranges from approximately $53,893 per year (estimate) for an IRC to $740,455 per year (estimate) for a Managing Director. The average Evercore Partners hourly pay ranges from approximately $30 per hour (estimate) for a Receptionist to $105 per hour (estimate) for a Project Manager.
Is Evercore or Goldman Sachs better? ›
Goldman Sachs scored higher in 1 area: Diversity & Inclusion. Evercore Partners scored higher in 9 areas: Overall Rating, Culture & Values, Work-life balance, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook.
How much does a VP at Evercore Partners make? ›
The average Vice President base salary at Evercore Partners is $228K per year. The average additional pay is $128K per year, which could include cash bonus, stock, commission, profit sharing or tips.
What is the highest paid job at Evercore? ›
Evercore Salary FAQs
The highest-paying job at Evercore is a Managing Director with a salary of $620,436 per year (estimate). The lowest-paying job at Evercore is an Office Assistant with a salary of $42,714 per year (estimate).
How prestigious is Evercore? ›
NEW YORK, October 24, 2023 – Evercore ISI was ranked No. 1 among all firms for analysts on a weighted basis in Institutional Investor's All-America Equity Research survey for the second consecutive year. This overall rank is determined by applying the greatest weight to the highest-ranked individuals in each category.
How hard is it to get into Evercore? ›
How hard is it to get into Evercore? Evercore is a highly selective company, and the application process for the internship program is highly competitive. The company looks for candidates who have a strong academic background, relevant work experience, and a passion for finance.
What is the minimum amount for Evercore wealth management? ›
Qualified investors with $5 million or more in investable assets can open an account with Evercore Wealth Management by signing our investment management agreement and related documents.
Earlier this month, Evercore hiked starting salaries for first year analysts to $120k, $10k more than Goldman Sachs and $20k more than most other banks. But it's not just Evercore's new analysts who are benefitting from the largesse.
How much does a director at Evercore make? ›
$279K (Median Total Pay)
The estimated total pay range for a Director at Evercore Partners is $227K–$349K per year, which includes base salary and additional pay.
How much does an associate at Evercore make? ›
The average Associate base salary at Evercore Partners is $166K per year. The average additional pay is $47K per year, which could include cash bonus, stock, commission, profit sharing or tips.
What is the hardest bank to get into? ›
Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.
Is Evercore an elite boutique? ›
Of this top 10, Evercore and Centerview would qualify as elite boutiques. Today, we're going to discuss the nature of elite boutiques, how they compare with bulge brackets, as well as the pros and cons of working for an elite boutique.
Who is the highest paid investment banker in the world? ›
1. Goldman Sachs is the highest paying bank overall - $398k in combined salaries and bonuses, on average. Goldman Sachs, which paid average salaries of $200k and average bonuses of $199k for 2023, was the highest paying bank we polled.
What is an average bonus rate? ›
Highlights: Average Bonus Percentage Statistics
The average bonus as a percentage of annual salary in the U.S. is around 8%. In the UK, the average bonus as a percentage of annual salary is around 6.5%. In the financial and insurance sector, the average bonus as a percentage of annual salary is 20.9%.
What is a respectable bonus? ›
An annual bonus of 5-10% of your yearly salary is standard in a lot of industries, just as a 5-10% annual raise is considered standard.
Is a 7% bonus good? ›
A good bonus percentage is between 10% and 15% of your annual salary. This range is normally considered to be a good bonus percentage, however, 15% is often a rare percentage for most employee bonuses. This question is also a variable one because it can apply to a variety of types of bonuses.
What is the average stay bonus amount? ›
Retention bonus rates typically range between 10% and 15% of an employee's base pay, and companies often offer them in one sum or biweekly or biannual instalments. They're powerful retention tools as long as business and employee needs align.
