3/29/12

Hi, I'm totally new here. I have recently received an offer to join one of the Big 4 in California as an (1st year/new) audit manager. I'm not from USA, hence not familiar with the Big 4 pay structure. Just trying to do some sense check on the current salary for a new audit manager against the offered salary, could I find out from you guys what is the general base salary range for a new audit manager? What is the average increment and bonus expected from the Big 4? What's the usual number of years of experience required before one is made an audit manager in USA?

Appreciate your input. Thanks!

Comments (12)

3/29/12

http://goingconcern.com/post/what-can-you-expect-m...

Manager promotions usually happen between 5-7 years.

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3/29/12

Big 4 salaries in the states suck big time!

3/29/12

80k is a decent rough average for a first year manager. Bonus of around $7-10k for a high performer (4-5k for an average performer).

More in NY, less in Iowa.

3/29/12

Really? 80k is regarded as a decent average? How about in San Francisco or San Jose area?

I found the Robert Half salary guide 2012 which gave a range of $88,750 to $121,500 as the national average for audit managers in a large public accounting firm. after factoring Robert Half's index for San Francisco/San Jose to localize the salary, the range is approximately $118k to $161k. Just wondering, how close to reality are this surveyed figures?

I'm trying to do my maths now on the package offered. Coming from an extremely tax friendly jurisdiction, the disposable income of an audit manager (assuming ~40% of the gross income for all required taxes - an accurate estimation?) seems to be much lower in the US compared to my current location. Factoring in other fixed costs such as rent, transport, etc., it seems like there is not much left for other purposes (savings, investments, etc). How do you guys manage your salary to cover the necessary expenses?

3/29/12
shammieq:

Really? 80k is regarded as a decent average? How about in San Francisco or San Jose area?

I found the Robert Half salary guide 2012 which gave a range of $88,750 to $121,500 as the national average for audit managers in a large public accounting firm. after factoring Robert Half's index for San Francisco/San Jose to localize the salary, the range is approximately $118k to $161k. Just wondering, how close to reality are this surveyed figures?

I'm trying to do my maths now on the package offered. Coming from an extremely tax friendly jurisdiction, the disposable income of an audit manager (assuming ~40% of the gross income for all required taxes - an accurate estimation?) seems to be much lower in the US compared to my current location. Factoring in other fixed costs such as rent, transport, etc., it seems like there is not much left for other purposes (savings, investments, etc). How do you guys manage your salary to cover the necessary expenses?

that range you're referring to could be for the average manager, which could be across 3-4 years of experience. in your original post, you're inquiring about the new audit manager salaries, which from my knowledge, I can agree with the above posts (~80-85K base)

Sometimes lies are more dependable than the truth.

3/29/12

double

Sometimes lies are more dependable than the truth.

3/29/12

$161k is more in line with the most senior managers in public accounting (partner in waiting).

The SF office also isn't given a big enough bump to cover the cost of living adjustment in comparison to people in St. Louis or places like that.

3/29/12

ok..... thanks for the info!

How about increment and bonus? I understand the increment and bonus are performance based, can you guys also help to provide some insight on the expected range of increment and bonus in general? presumably there will be annual increment? what's the % that we are looking at? how much bonus does a typical average-performing Big 4 audit manager receive?

3/29/12

http://goingconcern.com/post/bonus-watch-12-kpmg-a...

This is an article on going concern relating to KPMG's advisory practice...which I am under the impression makes slightly higher bonus percentages and bases the higher up you go compared to audit.

3/29/12

Our salaries blow for the work we do. There's a reason I troll WSO and am looking at getting my CFA. Quality of life is better in many cases but I still know a few dipshits who are willing to put in 80-90 hour weeks and not make 6 figures within 7 years. So we have people who are willing to *almost* work as hard as finance guys for much less, and that lack of self-esteem doesn't help matters.

More specifically, I'm in Chicago so these numbers reflect that. Actual managers are likely in the 80-110 range, with very few around that higher end. 160 would generally be a very, very tenured senior manager with 14+ years

I'm not saying that isn't good money, but it's laughable around these parts. It's a good career and can set you up for other things, but auditors are underpaid up until partner, at which point they're probably overpaid. So congrats on the opportunity, get what you can out of it, but if you're like me, keep an eye out for exit opportunities. Good luck

3/29/12

Also OP, for bonuses that really depends on the firm. typically I'd say to expect 4-6% of base for avg performers

3/29/12
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