So got it on good authority for a big 4 partner who is a good friend, has been partner only about 2 or so years now, is on $270k a year total comp. this is in a first world developed western country.
Crazy when you think that associated 4 years out can be making more than this.
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Cool, thanks for sharing bud
You’re being sarcastic but you bothered to comment on it loser. You’re the real wanker. MVW
He's salty because he's actually theaccountingmajor
Yes, it is crazy when you think that associates 4 years out can be making more than this.
BUT, your friend has been a partner for 2 years. He is thus most likely an "income" partner rather than an "equity partner". In fact, most newly-promoted partners are not really equity partners of the firm for the first few years. Rather, they have the "partner" title but they are still salaried employees. After an interim period that can last anywhere from 1 year to 4 years and more, these partners need to "buy in" the firm and then they can officially become equity partners. This is where the money is.
Of course equity partners at big 4 do not make nearly as much as their IB or PE counterparts. But they can earn (in due time) over $750k in major North American cities. National and/or regional leading partners of certain practices (for instance, National Leader of Financial Advisory) can earn much more (1M+). Keep in mind that these compensation figures are most likely attained by partners later in their career.
The information above has been gathered from numerous mentors and family friends, many of whom are currently big 4 partners.
Actually he is equity as he said it is total including his dividends. And dividends only go to equity. Plus his firm doesn’t have non equity.
But I do agree it will increase in proceeding years a fair bit more I imagine
Makes perfect sense. You pay your banker millions in fees, but your auditor is on a ~"fixed" rate of maximum a couple hundred thousand, probably mid-high 5 figures, for the mean customer. Smaller cake, smaller pieces.
Work less, paid less.
Smaller pie, smaller piece.
I agree it's crazy in that you think about some IB associates / HF Quants that make that in their first several years, but we've kind of known / expected that already.
How old is he / how long did it take your friend to get partner?
This guy is mid 40s took him a while to get there and started a little later. but not too late. Think mid to late 20s began. But yea took him quote a long time - but in fairness he enjoyed life a bit more than most.
I see you say work less, but that is not the case - partners work a lot of hours as they basically always on the go and not only the actual work, but the meetings, the functions, conferences, travel etc etc. I honestly would say it is similar hours to a banker.
But I get what you mean by smaller pie.
Note he is in Tax, not audit.
I've come to the self-realization that instead of always chasing the next step to get up the mountain, reaching the summit that some consider HF / PE / VC that sometimes you just need to enjoy the path and look up once in a while.
I'll look back on my life and enjoy the freedom of being able to take longer vacations with my family along the way, take time off relatively short notice, get home to my family and friends earlier, and just live happy.
Personally, I don't need a McLaren waiting for me when I get home or a Patek on my wrist. Find what you love to do and get good at it, if that happens to be banking / consulting / PE / whatever then so be it. The money will come.
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