How much does a Director at McKinsey make?
(Senior Monkey, 95
Points)
on 2/27/09 at 11:38am
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?
Cheers
Before things hit the fan,
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).
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real numbers
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
what are the reasons for not
what are the reasons for not paying based on how much business you bring in?
Not surprising
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...
I was more referring to how
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.
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I sometimes wonder why Mck
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...
Difference is very simple.
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.
is there anywhere with hard
is there anywhere with hard data on this?
im curious about bcg/bain as well
Any private services company
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.
My friend's dad is a Director
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.
I'd guess ~750 at most Fact
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.
friendofblue wrote: I'd guess
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
Yeah it's definitely over
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.
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2x2Matrix wrote: Yeah it's
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
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blackfinancier
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...
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WSO is not your personal search function.
Well I wasn't saying Kumar
range is 1mm to 8-10mm (might
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I can confirm 7S's comment: