Something a lot of people are dying to know.
The data is what Ive gathered from my own experience, current consulting friends, and public sources. They wont be 100% accurate but should be pretty close.
2 valuable resources on consulting include my blog - Management Consulted - and wallstreetoasis.com
Here they are!
1st year out of college undergraduate:
Base salaries: $50-65K Signing bonuses: $5-10K Relocation/moving expenses: $5-10K Year-end bonus: $5-10K
Thats an average of $70-75K in first year compensation. As an intern, you can expect a comparable, pro-rated salary (minus the bonuses). Please note that 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
Thats an average of $160-200K in total first year compensation. Please note that this does not include retirement contributions.
Progression track through partner:
My numbers have a higher risk of being inaccurate as this is only from personal anecdotes - so take them with a grain of salt
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 is increasingly 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 places like McKinsey, theyll 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 Id seen in previous years) More generous expense and reimbursement policies, travel perks, etc
Hope everyone found that informative. Good luck breaking into consulting. - 15266
The data is what Ive gathered from my own experience, current consulting friends, and public sources. They wont be 100% accurate but should be pretty close.
2 valuable resources on consulting include my blog - Management Consulted - and wallstreetoasis.com
Here they are!
1st year out of college undergraduate:
Base salaries: $50-65K Signing bonuses: $5-10K Relocation/moving expenses: $5-10K Year-end bonus: $5-10K
Thats an average of $70-75K in first year compensation. As an intern, you can expect a comparable, pro-rated salary (minus the bonuses). Please note that 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
Thats an average of $160-200K in total first year compensation. Please note that this does not include retirement contributions.
Progression track through partner:
My numbers have a higher risk of being inaccurate as this is only from personal anecdotes - so take them with a grain of salt
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 is increasingly 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 places like McKinsey, theyll 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 Id seen in previous years) More generous expense and reimbursement policies, travel perks, etc
Hope everyone found that informative. Good luck breaking into consulting. - 15266
About the Author:
Management Consulted is a resource for understanding management consulting. Written by a former McKinsey consultant, it covers topics such as consulting salaries and lifestyles. Read the complete guide to consulting interviews today!
