November 30, 2023

Investment Banking

Let Your Investment Banking Do The Walking

See How Much Evercore Is Paying Analysts to Stay for the ‘Long-Term’

  • Insider obtained an internal memo from Evercore detailing a new analyst-to-associate promotion track.
  • The memo vows to promote its analysts to associates after two-and-a-half years.
  • See the details here, including eligibility requirements and promotion bonuses that can total $70,000.

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

It’s quietly understood at most firms that after two years, many investment banking analysts aspire 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.”