Consulting Exits Underwhelming??
I'm an incoming strategy consultant and I'm confused about the exit opportunities post-undergrad and post-MBA.
I came across the Charles Aris compensation study, which includes salaries for exits at the end of 2023 (for example, those who graduated in 2021 with two years of experience) from strategy consulting firms. Here’s the link for reference: Charles Aris 2024 Compensation Study.
Do these numbers seem accurate to you, or are they on the low side? Specifically, 220k after 4-5 years post-undergrad and 360k after 4-5 years post-MBA feel lower than expected.
Am I being overly optimistic about earning more from an MBB exit after 2-3 years if I don't plan to go into PE?
Based on the most helpful WSO content, here are some insights regarding consulting exits and compensation:
Exit Opportunities Post-Undergrad and Post-MBA:
Compensation Expectations:
General Observations:
Personal Experiences:
In summary, while the compensation figures you mentioned might seem on the lower side, they are within the expected range for MBB exits. The broader value of the experience, network, and potential for future growth should also be considered.
Sources: Breakdown of Post-IB Exit Opportunities, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer, What is the point of doing private equity if you will be pushed out after two years to get an MBA?, Q&A: 2.5 years @ MBB post PhD, A Few Observations on Investment Banking Exit Opportunities
Ex-MBB here. IMO the post MBA salaries are roughly in line with what I’d expect. Post undergrad, I think the salaries are a bit low, especially for the 2021/2020 undergrad. This could be due to a lack of data (Their survey is just within a 6 month stretch). From the people I know who left at this tenure, I’d expect someone with 1.5 - 2 years of MBB post undergrad to get ~120k - 150k TC in corporate, and someone leaving after their promotion (2-3 years post undergrad) might be able to hit the 160-200k mark.
But keep in mind that it’s very hard to match the comp trajectory of MBB/IB in the corporate world. Buddy… once you step outside the wso bubble, you’ll quickly realize that making 218k TC 4-years post undergrad is pretty much crushing it, especially if it’s a 9-5 as opposed to an intense gig that requires late nights/travel. Consulting salaries scale so fast that as you grow in consulting, corporate offers have a hard time catching up. Like at the 2-year mark MBB bumps your base to 190k, but you’ll almost never see that base in corporate…
Post MBA, it varies even more. Some of my peers leveraged their MBB experience + pre-MBA background into something extremely promising, but a lot of them struggled since they were too expensive to hire (someone with only 1.5 years of consulting post MBA and irrelevant pre-MBA experience is not worth 250k IMO).
Let me know if you have any questions, happy to try to answer.
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