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Just out of curiosity: what is the all-in comp for a Director (=Senior Partner) at McK? Also, what does a Junior Partner (=Principal) make? Anyone have confirmed numbers?

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Comments (25)

  • GoodBread's picture

    Before things hit the fan, I'd heard numbers ranging from 1m-2m depending on how much you bring in. There's probably outliers making more.

    But generally speaking, unless you're a lateral hire, that seems like way too little cake for the hours you put in to get there (compared to a GS MD or a Wachtell partner that is).

  • raider4ever's picture

    Previously in the ~2.5-4.5 range depending on seniority and office responsibilities (e.g. Director in charge of an entire region). 1-3 may be realistic this year.

    For a variety of reasons, Partners/Directors aren't paid out by "how much they bring in".

    Large Western Europe offices may be a bit higher or neutral. Everywhere else (e.g. EE/Asia/Latin America) numbers are lower to a lot lower.

    A Principle is a Partner, Associate Principle is a Junior Partner. Partners are 600k-1.5, APs are 300K-700K

  • consultant09's picture

    what are the reasons for not paying based on how much business you bring in?

  • In reply to GoodBread
    spinner's picture

    GoodBread wrote:

    But generally speaking, unless you're a lateral hire, that seems like way too little cake for the hours you put in to get there (compared to a GS MD or a Wachtell partner that is).

    It's not surprising that consultants make less than GS - that has always been the case. With respect to Wachtell you have to remember that Wachtell is a relatively small (very elite) boutique, while McKinsey is the world's largest strategy consultancy. Since they have so many more partners than Wachtell there is no way their average comp could compare with Wachtell - which pays 30-50% more on average than its competitors. If you take the top 200 McK partners they will bank the same as an average Wachtell partner...

  • GoodBread's picture

    I was more referring to how hellish going from being a consultant to partner is supposed to be. Apparently, the face-time, travel and butt-kissing are second to none. I doubt the average partner at Mckinsey is too far off the average one at Skadden too.

  • hardbanker's picture

    I sometimes wonder why Mck vs PE.
    In both you'd see a variety of industries or specialize where you want. Get to guide a portfolio co's strategy, generate post-close value etc

    But a Senior MD at a Mega Fund would bring in $15M vs 3M at McK... Do SMDs they really work 5x as hard? Add 5x as much value? Is the 80% paycut to work at McK worth it (assuming you could choose either one)?

    Currently it might be more 3M vs 1.5M but still...

  • In reply to hardbanker
    Wharton04's picture

    Difference is very simple. Most of a PE SMD's upside is in portfolio performance through carried interest. Therefore you are compensated based on how the fund does which equals risk.

    McK guys, and bankers for that matter, are just consultants, they make recommendations and just that. There's no follow through risk, implementation risk, not to mention none of your capital is at risk.

    Principal side vs. advisory side is always more lucrative, but also has more downside.

  • Kenny_Powers_CFA's picture

    Any private services company (consulting, boutique M&A, law, accounting) has a big interest in keeping compensation as quiet as possible. Even buyside shops don't regularly publish details. No one knew what MDs at banks made until they went public and were forced to disclose.

    There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.

  • kingtut's picture

    My friend's dad is a Director at McKinsey. If I were to guess I'd say he is pulling in at least 5MM/year. He's an incredibly nice guy and easy to chat with but he has a thing against helping out his son;s friends. Too bad, you can make it rain after leaving McK.

  • friendofblue's picture

    I'd guess ~750 at most

    Fact 1:
    Mr. Kumar is a senior partner McK that founded the Silicon Valley and India office

    Fact 2:
    Mr. Kumar testified Monday that he gave "super confidential" information about McKinsey client AMD and other companies, to Mr. Rajaratnam in exchange for payments totaling $2 million that were made through offshore accounts to an account in his housekeeper's name.

    His reaction to getting paid $1MM to pass illegal M&A tips to Galleon:
    "At the end of 2006, Mr. Kumar testified, Mr. Rajaratnam said he was so pleased with Mr. Kumar's work that he would pay him $1 million for the year.

    When he heard that, Mr. Kumar said: "I almost fell off my chair." "

    Conclusion:
    You are only impressed with $1M a year then your comp is not super high - won't get into risk/reward either.

  • In reply to friendofblue
    manbearpig's picture

    friendofblue wrote:
    I'd guess ~750 at most

    Fact 1:
    Mr. Kumar is a senior partner McK that founded the Silicon Valley and India office

    Fact 2:
    Mr. Kumar testified Monday that he gave "super confidential" information about McKinsey client AMD and other companies, to Mr. Rajaratnam in exchange for payments totaling $2 million that were made through offshore accounts to an account in his housekeeper's name.

    His reaction to getting paid $1MM to pass illegal M&A tips to Galleon:
    "At the end of 2006, Mr. Kumar testified, Mr. Rajaratnam said he was so pleased with Mr. Kumar's work that he would pay him $1 million for the year.

    When he heard that, Mr. Kumar said: "I almost fell off my chair." "

    Conclusion:
    You are only impressed with $1M a year then your comp is not super high - won't get into risk/reward either.

    Impossible. Average partners at my firm clear 750 after 5-6 years of making partner. Whether or not you're making 3MM$ a year, if you get a 2MM$ check for doing 5 minutes of work, when you were only expecting $1MM, I think you would fall off your chair too.

    -MBP

  • 2x2Matrix's picture

    Yeah it's definitely over 750. Manbearpig got it right, Kumar was astounded because a million bucks is a lot of money, even for someone that brings in 3mil a year. Think about it: if you're a junior person making 100K and someone handed you a check for 33K, that would seem like a lot, no? Just because you make a couple mil a year doesn't mean that a million dollars becomes chump change.

    One of those lights, slightly brighter than the rest, will be my wingtip passing over.

  • In reply to 2x2Matrix
    bfin's picture

    2x2Matrix wrote:
    Yeah it's definitely over 750. Manbearpig got it right, Kumar was astounded because a million bucks is a lot of money, even for someone that brings in 3mil a year. Think about it: if you're a junior person making 100K and someone handed you a check for 33K, that would seem like a lot, no? Just because you make a couple mil a year doesn't mean that a million dollars becomes chump change.

    Exactly.... I think the comment MBP responded to was someone who doesn't quite understand the value of money.... someone handing you a check for a million dollars unless you were making a many million dollars a year is a lot of money

    The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

    WSO is not your personal search function.

  • In reply to bfin
    happypantsmcgee's picture

    blackfinancier wrote:
    2x2Matrix wrote:
    Yeah it's definitely over 750. Manbearpig got it right, Kumar was astounded because a million bucks is a lot of money, even for someone that brings in 3mil a year. Think about it: if you're a junior person making 100K and someone handed you a check for 33K, that would seem like a lot, no? Just because you make a couple mil a year doesn't mean that a million dollars becomes chump change.

    Exactly.... I think the comment MBP responded to was someone who doesn't quite understand the value of money.... someone handing you a check for a million dollars unless you were making a many million dollars a year is a lot of money


    Why rekindle a 7 month old thread...

    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • In reply to happypantsmcgee
    bfin's picture

    happypantsmcgee wrote:
    blackfinancier wrote:
    2x2Matrix wrote:
    Yeah it's definitely over 750. Manbearpig got it right, Kumar was astounded because a million bucks is a lot of money, even for someone that brings in 3mil a year. Think about it: if you're a junior person making 100K and someone handed you a check for 33K, that would seem like a lot, no? Just because you make a couple mil a year doesn't mean that a million dollars becomes chump change.

    Exactly.... I think the comment MBP responded to was someone who doesn't quite understand the value of money.... someone handing you a check for a million dollars unless you were making a many million dollars a year is a lot of money


    Why rekindle a 7 month old thread...

    I didn't just post that it was more of an edit...

    The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

    WSO is not your personal search function.

  • In reply to manbearpig
    friendofblue's picture

    Well I wasn't saying Kumar earned 750, just saying based on what he seemed to have earned (it didn't seem like 25 million a year), the average partner makes 750. Which seems to line up with your numbers, do you work at a MBB?

    In contrast, a 2nd year VP (EM equivalent) probably earns that much at a large PE shop. 1st year associates earn 300+

    manbearpig wrote:
    friendofblue wrote:
    I'd guess ~750 at most

    Fact 1:
    Mr. Kumar is a senior partner McK that founded the Silicon Valley and India office

    Fact 2:
    Mr. Kumar testified Monday that he gave "super confidential" information about McKinsey client AMD and other companies, to Mr. Rajaratnam in exchange for payments totaling $2 million that were made through offshore accounts to an account in his housekeeper's name.

    His reaction to getting paid $1MM to pass illegal M&A tips to Galleon:
    "At the end of 2006, Mr. Kumar testified, Mr. Rajaratnam said he was so pleased with Mr. Kumar's work that he would pay him $1 million for the year.

    When he heard that, Mr. Kumar said: "I almost fell off my chair." "

    Conclusion:
    You are only impressed with $1M a year then your comp is not super high - won't get into risk/reward either.

    Impossible. Average partners at my firm clear 750 after 5-6 years of making partner. Whether or not you're making 3MM$ a year, if you get a 2MM$ check for doing 5 minutes of work, when you were only expecting $1MM, I think you would fall off your chair too.

  • 7S's picture

    range is 1mm to 8-10mm (might not happen every year)

    80% range would be 2-4mm

  • yingxuy's picture

    Issued from time to time even if the buyer shops for more information. No one knows what the Bank of MDS, and until they are forced to disclose to the public.

  • someone447's picture

    I can confirm 7S's comment: "range is 1mm to 8-10mm; 80% range would be 2-4mm" and also that gupta+kumar were at the higher end of the range (7-10mm).

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  • In reply to consultant09
    TheConsultingCoach's picture

    I previously worked for McKinsey in London and have started a blog about consulting and how to get into it at www.theconsultingcoach.com