Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Something you should know, thought I'd share
https://managementconsulted.com/2009/01/ ... u-partner/
The truth behind consulting salaries: from analyst thru partner
by kgao on January 8, 2009
Something a lot of readers are dying to know.
The data is what I’ve gathered from my own experience, current consulting friends, and public sources. They won’t be 100% accurate but should be pretty close.
One resource I’ve found valuable is the Consulting forums at WallStreetOasis.
First year out of undergraduate:
Base salaries: $50-65K
Signing bonuses: $5-10K
Relocation/moving expenses: $5-10K
Year-end bonus: $5-10K depending on firm.
That’s an average of $70-75K in first year compensation. As a summer intern, you can expect a comparable, pro-rated salary (minus the bonuses). This does not include retirement contributions.
First year out of business school/MBA:
Base salaries: $110-140K
Signing bonuses: $20-40K
Relocation/moving expenses: $10-20K
Year-end bonus: $20-40K depending on firm.
That’s an average of $160-200K in total first year compensation. This does not include retirement contributions. My original estimates were a bit lower, but have been adjusted upward based on emails and the comments below.
Progression track through partner:
My numbers have a higher risk of being inaccurate as this is only from personal anecdotes, so if you have better information, email me or comment below
Engagement manager/Project leader: $175-250K
Associate principal/Senior project leader: $250-400K
Partner/Principal: $500-800K
Senior partner/Director: $1M plus
At more senior levels the pay becomes increasingly variable and performance-based
How consulting salaries lose to finance:
At almost every level of consulting, your salary will be 30-50% lower than a comparable position in investment banking. This is variable by year and median salaries in non-banking departments (such as research, asset management, sales & trading) are lower. But like I said in this post, consulting is not a profession to make big bucks.
How consulting firms compensate for the lower salaries:
Better benefits - healthcare, life insurance, etc
Retirement contributions - this one is important because at MBB, they’ll contribute an added 5-10% of your base salary to your retirement funds, effectively a 5-10% year-end bonus! (A reader just informed me that his MBB retirement contribution starting fulltime in ‘09 was 4.5%, which is lower than I’d seen in previous years)
More generous expense/reimbursement policies, travel perks, etc
I’m going to start adding funny, topical cartoons to the end of posts from now on. Here is the first:
https://managementconsulted.com/2009/01/ ... u-partner/
The truth behind consulting salaries: from analyst thru partner
by kgao on January 8, 2009
Something a lot of readers are dying to know.
The data is what I’ve gathered from my own experience, current consulting friends, and public sources. They won’t be 100% accurate but should be pretty close.
One resource I’ve found valuable is the Consulting forums at WallStreetOasis.
First year out of undergraduate:
Base salaries: $50-65K
Signing bonuses: $5-10K
Relocation/moving expenses: $5-10K
Year-end bonus: $5-10K depending on firm.
That’s an average of $70-75K in first year compensation. As a summer intern, you can expect a comparable, pro-rated salary (minus the bonuses). This does not include retirement contributions.
First year out of business school/MBA:
Base salaries: $110-140K
Signing bonuses: $20-40K
Relocation/moving expenses: $10-20K
Year-end bonus: $20-40K depending on firm.
That’s an average of $160-200K in total first year compensation. This does not include retirement contributions. My original estimates were a bit lower, but have been adjusted upward based on emails and the comments below.
Progression track through partner:
My numbers have a higher risk of being inaccurate as this is only from personal anecdotes, so if you have better information, email me or comment below
Engagement manager/Project leader: $175-250K
Associate principal/Senior project leader: $250-400K
Partner/Principal: $500-800K
Senior partner/Director: $1M plus
At more senior levels the pay becomes increasingly variable and performance-based
How consulting salaries lose to finance:
At almost every level of consulting, your salary will be 30-50% lower than a comparable position in investment banking. This is variable by year and median salaries in non-banking departments (such as research, asset management, sales & trading) are lower. But like I said in this post, consulting is not a profession to make big bucks.
How consulting firms compensate for the lower salaries:
Better benefits - healthcare, life insurance, etc
Retirement contributions - this one is important because at MBB, they’ll contribute an added 5-10% of your base salary to your retirement funds, effectively a 5-10% year-end bonus! (A reader just informed me that his MBB retirement contribution starting fulltime in ‘09 was 4.5%, which is lower than I’d seen in previous years)
More generous expense/reimbursement policies, travel perks, etc
I’m going to start adding funny, topical cartoons to the end of posts from now on. Here is the first:
20 Jan 2009, 17:54
Kudos
Bookmarks
Thanks for the info gobruins!
I'm in non-strategy consulting with a Big 4 firm, and my analyst numbers out-of-undergrad were pretty much inline with that. I started traveling from day one as well, so per-diems and other expenses also add a little bit (depending on project). For example, I also sold my car (and thus have no car payment), as I rent cars every weekend and can expense that instead of taking a taxi to/from the airport every week.
Question, though -- do management consulting firms take into account your pre-MBA salary at all when determining offers, or is it mainly standard packages based on your school? My pre-MBA salary currently is on the higher-end of my level, so I'm wondering if that will impact my potential starting package in any way.
I'm in non-strategy consulting with a Big 4 firm, and my analyst numbers out-of-undergrad were pretty much inline with that. I started traveling from day one as well, so per-diems and other expenses also add a little bit (depending on project). For example, I also sold my car (and thus have no car payment), as I rent cars every weekend and can expense that instead of taking a taxi to/from the airport every week.
Question, though -- do management consulting firms take into account your pre-MBA salary at all when determining offers, or is it mainly standard packages based on your school? My pre-MBA salary currently is on the higher-end of my level, so I'm wondering if that will impact my potential starting package in any way.
