Paul J. Taubman, Chief Executive Officer of PJT Partners Inc and former Morgan Stanley banker, has received $75.5 million compensation in his first year. Taubman led the investment bank as a publicly traded company.
Latest $75.5-mln annual award is five times of the second highest paid named executive officer Ji-Yeun Lee, Managing Partner. Lee's compensation is reportedly $13 million. Most of the total package was in exchange for the contribution of his interest in predecessor firm.
Bloomberg gives a breakup of total compensation of Paul J. Taubman as the package includes $57.8-million worth 2.75 million of previously disclosed founder units. These 2.75 million founder units are valued at $21 a piece, according to a regulatory filing. Taubman has also received 3.05 million earn-out units valued at $175 million and these will be vested by 2019. This is subject to fulfilling share price targets.
Previously, Paul J. Taubman had merged his firm with advisory business of Blackstone Group LP. Subsequently, the combined business was hived off as private equity (PE) firm in October. Stock price rose $27.24 on Tuesday, higher than $21 on its first session as publicly traded company.
Taubman led the investment bank PJT Partners to become publicly traded company. The regulatory filing gave a first glimpse about Taubman's compensation to investors, as reported by Financial Times.
Taubman always insists on providing valued-added advice to clients. After IPO, PJT has joined independent firms such as Houlihan Lokey, Lazard and Moelis & Co. These firms are bagging a sizeable chunk of M&A advisory work.
Led by Taubman, the investment bank has bagged advisory roles for companies such as Yahoo Inc and Yum Brands Inc. It also increased fees as part of restructuring practice amid lower oil prices are rattling the energy sector.
PJT Partners made its debut trading on New York Stock Exchange (NYSE) in October 2015. The 350-employee firm offers restructuring advise, fund placement and mergers and acquisitions (M&As) from its offices located in US, Europe and Asia.
Institutional Investor further adds that PJT was ranked at 27th position in global M&As by deals volume, according to Dealogic. It was a big jump from its 49th position in 2014. PJT managed 28 transactions valuing $82 billion. In 2014, PJT advised on 19 deals with a total value of $20 billion.
Paul J. Taubman's earn out units are tied to PJT share price target reaching as high as $79 per share. His salary was estimated at $250,000 for last three months of 2015. Taubman had advised several megadeals. He served Morgan Stanley for 30 years.
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