IB or Consulting better for C-suite track career?
Hi all, currently incoming SA at a top BB but having doubts given WLB concerns and whether it actually aligns with my long-term goals. My end goal is a large family (3/4 kids, dogs) with whom I have an actual relationship, 2 vacations/holidays a year, and the time to exercise regularly. Given cost concerns, this would likely be outside of the VHCOL locations, ie not NYC/London (authorised in both UK/US). Past that I’d just like to maximise comp/net worth assuming those boxes are ticked.
I think the classic IB MD / PE Partner track that typically comes with starting in IB after undergrad likely has too little WLB for my goals. Thus, I am looking to sacrifice on comp and transition into a career within a large company. Alternatively, working as an executive in PE-backed companies also sounds like a nice middle ground given the incentive compensation that PEs provide.
Would love to get thoughts on whether IB or Consulting is better for this. I have committed to the IB summer but can recruit for MBB full-time.
Based on the most helpful WSO content, both Investment Banking (IB) and Consulting can lead to a C-suite track career, but they offer different experiences and skill sets.
Investment Banking: - Provides a more focused skill set, particularly quantitative and modeling focused. You'll become an expert at valuation and typical models like M&A, LBO, and capital raises. - Known for longer hours and a 'facetime' culture where you have to be in the office and show face. - Can make you more competitive for jobs that require deal diligence and deal process as well as modeling. - It's a common path to Private Equity, which you mentioned as an alternative.
Consulting: - Offers a broader skill set. You'll get very good at structuring an ambiguous business problem, identifying a path to solve it, figuring out data and information needed for analysis, and then executing analyses to get the job done. - Known for better work/life balance compared to banking. However, hours can still be long depending on the project. - Can open you up to other strategy and operation focused roles, which could be beneficial for a C-suite track. - Consulting arguably offers broader exit options.
Given your long-term goals, it seems like Consulting might align better with your desired work/life balance and your interest in strategy and operations. However, it's important to note that both paths can lead to a successful career in a large company or as an executive in PE-backed companies. It's all about finding the right fit for you.
Sources: Q&A: Consulting v. Banking, the age old question. By Former MBB and Bulge Bracket Banker., Q&A: Former MBB Consultant, Q&A: Former MBB Consultant, Checking in 6 years later [IB to MBB transition], https://www.wallstreetoasis.com/forum/private-equity/did-you-learn-more-in-pe-or-consulting?customgpt=1
Does anyone even read these lol
So you want WLB but are also asking the best path to the C Suite? Bruh 🤦
Not necessarily the “C-suite”, but rather the “C-suite track” in the sense of just climbing the corporate ladder in general.
IB - more exposure to people on C-Suite roles, so you can learn more.
As a junior this is arguable if you're at an eb but if you're at a bb then I doubt this. mbb guys will get more client exposure in their first 3 years than a bb banker almost always
Bro just create your own business the WLB is the best then and comp will be great too many risk adverse mfs on here
WLB is literally the worst for entrepreneurs (serious ones at least)
You get to decide that. That sounds like cope tho
Neither. The best role is accounting. Qualify with Big 4, move into FP&A / Financial Control / Treasury, work your way up to CFO, and eventually CEO.
For large corporates, I highly doubt there's CEO/CFO candidates without experience across all of those departments even if its "less prestigious" than IB/PE. The high finance skillset seems pretty narrow in scope if that's the goal.
Very cool. Would be curious to see how different CFO/COO is.
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Wow Lazard outperforming gs and ms. Incredible name-value. Again, further evidence to my earlier comment of mbb and possibly eb being a better track to c-suite than a bb. Evidently a marginal difference between eb and bb though.
Is this adjusted for tons of "entrepreneurial" guys being "CEO/CxO" of a shitty startup/tiny company? If we're only look at C-Suite of large companies (publicly traded, >500MM market cap, has been in operation for over 30 years), then I'd expect things to significantly tilt towards MBB/BB/EB and way less from music studios and the NFL or whatever the fuck peasant organizations are on that list
Also you're telling me Procter & Gamble (with 107k employees) has 4% of their former staff going into C-suite positions (~4k P&G alumni)?? who tf made this list
I agree, these lists should be taken with a pinch of salt.
If your goal is to exit to a corporate with an eventual path to C-suite, to me MBB is a no-brainer vs. IB. You’ll learn useful, transferable skills in both, but from IB your corp exit will generally be to M&A/Corp dev. Whereas MBB alums can go much broader depending on their client base and project experience. This is mainly relevant assuming you leave post-analyst to VP/engagement manager level. If you stick it out to MD in banking your exits can be much better/comparable to an MBB senior partner, but that’s if your viewed as an industry expert and thought leader.
Also, if you want to go corporate, stay in the US, corp pay scale in UK/Europe is much lower.
Your ideal jobs sounds like VP/head of Corp Dev for a large company. Relatively high compensation, but good WLB which you won't find in PE, IB, Consulting, RE, or HF. To get on track for that role, you can do either consulting or IB. IB will help you climb the ranks in M&A in Corp Dev but MBB will help you climb the strategy side of Corp Dev.
Measuring MBB to all of IB is flawed. MBB is 3 of the top companies in consulting meanwhile ib is every group
Careers are very long and people often get trapped in thinking too short term. MBB is just a better role for operations/ managing a company, but the early exposure to finance in IB sticks with you for life. After an IB stint, you can always brand yourself as a “finance person”. Unless a consultant moves to PE, I always assume they don’t understand basic finance. This is just true and if you ever want to run a company, understanding fundraising and investors is really important.
Underrated path: 2 years IB -> MBA -> MBB
or
2 years IB -> 1-2 years startup -> MBA -> MBB
both paths should have you by 30 being a credentialed manager at an MBB easily able to be poached by a large firm or growing firm.
The work/ life balance trade off isn’t something I would weight too heavily right out of school. Sure 2 years of IB can suck, but in my experience 22-24 is pretty unproductive for most people anyway. Generally from a career perspective, people are all in grunt roles not learning a whole lot and hating their jobs and from a social perspective, people aren’t really seriously dating and there’s a lot of just mindless over-drinking going on. Work life balance is a real consideration with a family or sig other, but at 22-24 it just takes a toll on your short term well being—it won’t like tear apart your family or have your kids hate you. Put another way, if you grind to 24 or 25, you have plenty of time to catch up on fun or balance later on.
Post mba consulting sucks a little, but it isn’t horrible in the way that IB is. I think the part people often get hung up on with this path is it requires taking demotions and having less pay relative to your peers early on. Someone who goes IB -> PE will be making more than someone that goes IB -> startup -> MBA -> consulting. However, the IB-> PE path is pretty miserable and niche. I think too many people maximize for their salary at 30 and not enough maximize for their 40 year old self which is really where you start to earn.
barring the hedge fund industry, almost all other careers you work hard for decades and reap the benefits after. So it takes until like your 40s before you really run the show.
I know far more consultants who became CEOs than bankers. I know more bankers who have become CFOs than consultants.
On the whole, I would say being a consultant and moving pre-partner to a business in an operating role is a more common path to the C-suite.
But this is all really just back of the envelope math based on the companies I know. This is far from a real scientific approach
Really depends on the industry. More often than not, it's fast growing startups or PE-backed companies where the C-suite hold M7 MBAs.
I see this type of hypothetical question appear all the time. In all honestly, I can say with complete confidence that IB is 100% NOT the better career route for C-Suite. In fact, the fastest career track to a C-Suite role would generally be within the Restructuring subset of consulting. Why? Not necessarily because these individuals are equipped with managing turbulent times for businesses under distress. Rather, it's because of all the accumulated experience knowing the common themes you see among businesses that do end up facing issues down the line and what could've/should've been done instead. It's being proactive with strategically communicating with all stakeholders and negotiating contracts/arrangements with customers/suppliers. These are the folks that are FREQUENTLY asked to stay on full time in a C-Suite role of a client rather than rolling off to the next job.
You could be in your 20's and serving as the interim CFO/COO/CRO of a large company in bankruptcy or workout. Would love to hear any opinions that contradict me on this.
Yes this indeed is a true point. I can only give you my European perspective, however. If you work in RX consulting you will mostly consult absolutely (who would have guessed it) shitty (small to medium sized) businesses. While that alone already makes it a questionable exit let me tell you the worst part: most of these businesses are in the middle of bumfuck nowhere. Typically already economically disadvantaged regions (an example would be a buddy of mine who worked on a mandate for a coal-power plant in the deepest part of Eastern Germany with no direct/fast train connections to go to).
There are very good ways to make careers (extremely lucrative $$$) if you are somewhat competent and become the go to "interim cxx" for certain PE funds. But then again .. hell no. Extreme amount of stress/pressure from all stakeholders (employees, PE fund, maybe even local politicians).
I'll frankly pass that but ofc you can make it to a C-level position there drastically faster as compared to blue chip/public companies where it is not really plannable to become exec level at all.
Hello! I would like to ask you what is the "Extreme amount of stress/pressure" you are referring to? And why would conflict with stakeholders? Thank you!
Think there are two points here that should be really considered:
Interesting. I would have rated typical C-level exec job much less intense. Depends on industry/products but the big thing those guys that we as advisors don't have: they are not direct service providers.
As an MD/Partner in an IB/MBB you are literally always schmoozing up to clients and are used to fullfill completely unreasonable requests. As a CxO you are much further removed from the client side imho and if you have a well established firm/product that your clients need you are also not in this constant schmoozing/pitching/ass kissing position that our parnters and MDs have to be in to continue to make money.
Edit: what do I mean with schmoozing? We had one client who always made direct edits on >100 p. long PDF documents (instead of writing comments in E-Mail, Powerpoint, whatever). In the PDF he did not use the in-built adobe functions (yellowe stickers) but just randomly edited pages. The only way yo could back track tthe edits was to compare each page side by side (remember >100 pages) just to pick up that on page 95 he changed asome of the wording. Took us like 1-2 h more per day but our partner never asked the client to use the in-built sticky function (easier for him and both of us). That is the definition of IB/consulting ass kissing.
Yeh certainly there are C-suites who are completely chilling but on the other hand, I have seen corporate execs be awake at 4am due to time zones for management presentations (and its one thing to be moving logos at 4am vs succintly describing strategic initiatives of your business to a future buyer). You could argue the hours for them are at their worst during an M&A process but I am sure accounting firedrills / big sales pitches / board meetings / lawsuits would result in pain points throughout the year
Likewise have seen some absolutely BSD MDs who have no issue telling their client they are wrong / viewing it incorrectly / timeline won't work because they are so respected in their field. On balance agree that C-Suite probably is a calmer life than MD, but not nearly as often as I think people expect, and there are also a decent chunk of MDs who are whistling their way out to the elevator at 5pm as well.
As a consultant I would see this a bit nuanced. At the moment I sometimes even question myself if it would have been better to start out in IB. I went to consulting mainly for two reasons (i) more optionality/diverse set of exit ops and (ii) better WLB. While I have to say (ii) is fantastic as I directly can benchmark it to my banking friends (I live in an IB city) I am not so sure about (i) anymore.
Being more interested in finance in general PE exits are much harder for me then from any BB (even low/mid tier). When it comes to corporates I personally feel like the really interesting jobs (i.e. corporate development / M&A) are open to bankers nonethless.
Where MBB really edges out if you already have a specific industry or functional interest (i.e. colleauges of mine doing a lot of digital work (functional) or consult mostly for healthcare/pharma (industry)) and exit to certain positions that would not even remotely think of hiring a banker.
BB IB>MBB>non-BB IB
This doesn't even make sense mate, infographic above and general consensus suggests that at the very least for the c-suite track, your best bet is mbb>eb ib>=bb ib. Laz was top non-mbb for c-suite.
General consensus is irrelevant. My advice was based on logical reasoning about anecdotes rather than statistical probabilities, which can be misleading anyway. There can always be some confounding variable hidden in the background of infographics and probabilities.
You already have your answer. Do consulting for better WLB and greater initial optionality.
However, this idea that one path over the other is better for the “c-suite track” is misguided. Regardless of what you initially do, your career outcome is dictated by your skillset, ability to grow, judgement, determination, and luck. The smart, capable people rise to the top regardless of their background - there is a lot of research that proves this point.
And beyond your intelligence and capabilities, what’s also important is your industry and company. Go to where there is opportunity in a fast growing field or company that is interesting to you.
Lastly, if we are going to talk about specific roles to take where there is opportunity, pick ones that have outsized impact and influence - these are not just internal strategy and corp dev and can depend on the company or industry. For example, in CPG, brand management is where a lot of talent is nurtured. However, the role is less important than your company or industry ignoring obvious “bad” roles that have you doing low skill work like document processing.
No one likes this type of answer because it’s not a definitive step by step optimized recommendation, but it’s the truth. Your career in corporate becomes much less predictable after your first few years of working, and it’s up to you how you will set course. Late stage career growth is definitely NOT impacted by whether you did IB or consulting out of college.
Mean reversion theory can sometimes apply to jobs too
What are you refuting?
Just do consulting in general. Ib analyst jobs are a major drain on your energy and outlook
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