Question · Q4 2025
Sulan Jones asked whether the mega-cap M&A driven backdrop of 2025 is expected to continue or improve in 2026. She also sought clarity on the outlook for the compensation ratio following a significant step down in the fourth quarter.
Answer
Paul Taubman, Chairman and CEO, stated that the M&A market has not yet reached its full potential and anticipates a multi-year period of elevated deal activity due to a constructive macroeconomic backdrop, regulatory environment, and attractive capital markets. Regarding the compensation ratio, Mr. Taubman reiterated that it had peaked a couple of years ago and is expected to continue working its way down, with the pace dependent on market conditions and investment. Helen Meates, CFO, will provide a 2026 estimate in the Q1 results.
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