M&A boutiques are big payers. The average London employee at Perella Weinberg got £323k last time we looked, while Evercore regularly pays an average of $600k+. However, few boutiques are quite as generous as Robey Warshaw - the London corporate finance boutique that has just employed George Osborne, Britain's former Chancellor of the Exchequer.
Robey Warshaw has just announced its results for the year ending March 2020. Three partners and 13 employees managed to generate revenues of £26m and the partners shared profits of £17m. M&A boutiques have massive margins, but Robey Warshaw's are more massive than most.
With this kind of productivity, Robey Warshaw can afford to be lavish when it comes to compensation. Last year, its three partners (Simon Robey, Simon Warshaw and Philip Apostolides) shared their £17m, with one alone taking £10m from the pot.
Osborne, who is in his late 40s and has no prior corporate finance experience, is seemingly not joining as a partner but as an advisor. He still may be handsomely paid: Robey Warshaw's 13 non-partner level employees shared £6m last year, and were paid an average of £467k each. Given that Osborne was previously receiving £650k a year for working one day a week at BlackRock, he'll presumably earn more than this or will work part-time.
Osborne is joining Robey Warshaw after a 'tough' year. In the year to March 2019, Robey Warshaw's three partners shared £48m. It wasn't just partners who took a pay cut in the year to March 2020: employees also had their compensation reduced by 23% compared to one year earlier after revenues plummeted 55%. Osborne may not have any banking experience, but the boutique is presumably thinking that his book of contacts from years in government will make all the difference.
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