Accounts for Rothschild & Co. the half year to June 2021 have been released today. They suggest that now is a good time to work for the rarefied bank.
Rothschild spent €693m on compensation in the first half of this year, up 33% on pay in the first half of 2020. When this is averaged across its 3,797 employees for a full year, it works out at €365k ($430k) per head. Last year, average compensation at the bank was €305k.
Rothschild's generosity follows an excellent six months for its advisory (M&A) business and an even better six months for its merchant banking, which manages private equity and private debt for third parties.
Profits in Rothschild's advisory business rose 105% in the first half, to €168m on revenues of €833m (up 57%). In merchant banking, revenues were up 345% to €235m and profits soared to €185.3m from just €9.5m last year.
Unsurprisingly, Rothschild has been hiring in both areas. Headcount across the bank went from 3,675 in December 2020, to 3,797 at the end of June 2021.
Most of Rothschild's employees are located in Paris and London, although it also has some in Switzerland, North America and elsewhere in Continental Europe. Just 172 of last year's employees worked in the booming merchant banking business, versus 1,491 in global advisory. Those 172 look especially fortunate in 2021.
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