Paul J. Taubman
PJT PartnersAbout Paul J. Taubman
Founder, Chairman, and Chief Executive Officer of PJT Partners; age 64; director since October 2015; BS in Economics from Wharton and MBA from Stanford GSB . Under his leadership, PJT delivered 2024 revenue of $1.49bn (+29% YoY), GAAP pretax margin of 18.1%, and GAAP diluted EPS of $4.92 (+58% YoY); adjusted EPS was $5.02 (+54% YoY) . Over 2020–2024, cumulative TSR (value of $100 investment) rose to $379 vs. $173 for S&P 500 Financials; year-end 2024 share price was $157.81 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Morgan Stanley | Executive Vice President; Co‑President, Institutional Securities | ~30 years prior to 2015 | Oversight of investment banking, capital markets, sales & trading; senior leadership across global banking franchises |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| New York Cares | Board President | Ongoing | Leadership at NYC’s largest volunteer org; civic engagement |
| Cold Spring Harbor Laboratory | Vice Chairman | Ongoing | Governance and support of leading research institution |
| Partnership for New York City | Board Member | Ongoing | Business community engagement and policy interface |
| Stanford Graduate School of Business | Advisory Council Member | Ongoing | Business education and industry-academia linkage |
| Youth, Inc.; Foundation for Empowering Citizens with Autism | National Advisory Board Member; Trustee | Ongoing | Non-profit oversight and advocacy |
Fixed Compensation
- Base salary: $1,000,000 annually (unchanged since 2015) .
- No cash compensation beyond base salary since company inception .
| Year | Base Salary ($) |
|---|---|
| 2022 | 1,000,000 |
| 2023 | 1,000,000 |
| 2024 | 1,000,000 |
Performance Compensation
- Long-term equity is the primary incentive; no annual incentive award for 2024 performance .
| Award | Grant date | Units/Value | Performance metric | Status/Result | Service vesting |
|---|---|---|---|---|---|
| Performance LTIP Units | Feb 10, 2022 | 1,000,000 units | Dividend-adjusted share price hurdles (multi-tranche) | As of 12/31/2024, $130 dividend-adjusted per-share price hurdle achieved; awards vest on service schedule | 20% per year from Mar 1, 2023; remaining tranches scheduled for Mar 1, 2026 and Mar 1, 2027 (200k each outstanding as of 12/31/2024) |
| 2024 realized vesting | Shares/Units vested | Value realized on vesting ($) |
|---|---|---|
| Equity awards vested in 2024 | 300,000 | 34,280,184 |
| Outstanding equity at 12/31/2024 | Unvested units | Market value at $157.81 |
|---|---|---|
| Performance/LTIP Units (CEO) | 600,000 | 94,686,000 |
Additional notes:
- PJT does not anticipate further equity incentive compensation to the CEO through end of 2026 (outside long-term shareholder-aligned awards) .
Equity Ownership & Alignment
- Beneficial ownership: 400,000 Class A shares; 5,730,000 Partnership Units and associated Class B shares; combined voting power 19.9% on director elections/removals and 29.7% on other matters .
- Ownership guidelines: CEO required to hold 10x base salary ($10,000,000) in company equity; executives are in or expected to be in compliance within prescribed timelines .
- Hedging prohibited; pledging prohibited unless pre-approved by General Counsel .
| Ownership detail | Amount |
|---|---|
| Class A common shares | 400,000 |
| Partnership Units / Class B | 5,730,000 |
| Combined voting power (director elections/removals) | 19.9% |
| Combined voting power (all other matters) | 29.7% |
| CEO ownership guideline | 10x salary = $10,000,000 |
| Hedging policy | Prohibited |
| Pledging policy | Prohibited without General Counsel approval |
Upcoming vesting that may influence trading liquidity:
- 200,000 units vested Mar 1, 2025; scheduled vestings include 200,000 on Mar 1, 2026 and 200,000 on Mar 1, 2027 (as listed at 12/31/2024) .
Employment Terms
- CEO Partner Agreement effective Oct 1, 2015; non-compete during service and for 1 year post-termination; non-solicit of employees/consultants/clients/investors for 2 years post-termination; non-compete reduces to 120 days if terminated without cause and 90 days if resigning for good reason; perpetual confidentiality and non-disparagement .
- “Good Reason” and “Cause” defined; includes safeguard to ensure Board nomination/election and role/authority protections .
- Special “Board Change Good Reason” definitions and “Board Change of Control” construct; certain restrictions tailored to board changes .
- No contractual severance; flex termination practice with potential garden leave; equity acceleration provisions govern exit outcomes .
Potential equity acceleration at 12/31/2024 price ($157.81):
| Scenario | Accelerated vesting value ($) |
|---|---|
| Termination without Cause | 94,686,000 |
| Disability | 94,686,000 |
| Death | 94,686,000 |
| Change in Control | 94,686,000 |
Clawbacks and risk controls:
- NYSE 303A.14-compliant Clawback Policy recoups incentive pay upon accounting restatement; plan-level clawbacks and misconduct-based forfeiture apply; Sarbanes‑Oxley/Dodd‑Frank requirements incorporated .
Board Governance
- Board service: Director since October 2015; concurrent Chairman and CEO pursuant to Charter; Board believes combined role enhances strategic focus .
- Independence: 5 of 7 directors are independent; CEO Taubman is not independent; Board is classified into three classes .
- Lead Independent Director: Thomas M. Ryan with robust authorities (agenda, executive sessions, succession planning, shareholder liaison) .
- Committees (all independent): Audit (Chair Whitney), Compensation (Chair Ryan), Nominating/Corporate Governance (Chair Rafferty) .
- Executive sessions: four in 2024; ≥75% attendance across directors and committees; management directors receive no additional director compensation .
Dual-role implications:
- CEO + Chairman concentration mitigated by empowered Lead Independent Director, fully independent committees, and frequent executive sessions .
Performance & Track Record
2024 operating and capital highlights:
- Revenues $1.49bn (+29% YoY), GAAP pretax margin 18.1%, GAAP diluted EPS $4.92 (+58% YoY), adjusted EPS $5.02 (+54% YoY); $547mm cash/short-term investments; no funded debt; $1.00 annual dividend; >3.1mm shares repurchased .
Pay versus performance and stock metrics:
| Year | Share price (12/31) | PJT TSR index ($100 base) | S&P 500 Financials TSR index ($100 base) | Net income ($mm) |
|---|---|---|---|---|
| 2020 | 75.25 | 167 | 98 | 212 |
| 2021 | 74.09 | 172 | 132 | 190 |
| 2022 | 73.69 | 173 | 118 | 165 |
| 2023 | 101.87 | 243 | 133 | 146 |
| 2024 | 157.81 | 379 | 173 | 238 |
Say‑on‑pay and peer benchmarking:
- 2024 say‑on‑pay approval: 84.6% of votes cast in favor .
- Compensation peers considered: Lazard, Evercore, Houlihan Lokey, Moelis, Perella Weinberg, among others; Committee does not target a specific percentile .
Equity Ownership & Alignment (Detail)
- Ownership guidelines for executives: CEO 10x salary; others 5x salary; all are or expected to be in compliance within timing under guidelines .
- No hedging; pledging requires pre-approval; insider trading policy in place .
- Equity awards vest over multi-years with first tranche ≥1 year from grant; 2024 awards to partners generally vest in years 2–4 post-grant .
Employment Terms (Detail)
- RSUs/LTIP Units: upon death, disability, change in control, or termination without cause, outstanding RSUs/LTIP Units (vested and unvested) become immediately deliverable; resignations and terminations for cause generally forfeit unvested awards .
- Performance LTIP Units: on death/disability/without cause termination or change in control, service condition deemed satisfied and units with achieved performance condition vest; no retirement provision for CEO’s Performance LTIPs .
Board Service: Compensation and Independence Context
- Management directors receive no director pay; non‑management directors receive $225k annual retainer (50–100% in RSUs) increasing to $250k effective June 1, 2025; minimum ownership 3x retainer .
- Committees entirely independent; Compensation Committee uses Willis Towers Watson as independent consultant; no conflicts determined .
Investment Implications
- Alignment and incentives: CEO pay is heavily equity‑weighted with no cash bonuses since inception; substantial personal ownership and a 10x salary ownership requirement align incentives with long‑term TSR and share price, reinforced by hedging prohibitions and clawbacks .
- Vesting and potential selling pressure: Large scheduled vestings (e.g., 200k units each in 2026 and 2027) and significant acceleration value ($94.7mm at 12/31/2024 price) create identifiable liquidity and event‑driven trading windows; monitoring Form 4 activity around vest dates/change‑in‑control scenarios is prudent .
- Retention and change‑of‑control dynamics: Strong non‑compete/non‑solicit covenants and multi‑year vesting support retention; absence of cash severance but equity acceleration on certain exits concentrates economics in stock outcomes .
- Governance checks on dual role: Combined CEO/Chair is balanced by a robust Lead Independent Director and fully independent committees; say‑on‑pay support (84.6%) indicates investor acceptance of the structure and pay design to date .
- Performance momentum: 2024 revenue/EPS inflection and multi‑year TSR outperformance vs. sector enhance confidence in value creation under current leadership, though advisory banking cyclicality and talent competition remain structural risks .