Consulting pay is a joke
Hello monkeys,
Is it just me or do others also think Consulting pay is a joke. While our banking peers are getting substantial base raises (in addition to their already high bonuses), we are getting peanuts compared to the hours worked. I am wrapping up my first year at an MBB in NYC and will probably clear ~120k USD pre-tax including base and bonus. My hours have been terrible during WFH (and this is without the travel component -- can't even imagine what that will look like once travel to client site resumes. I'm already actively looking for exits.
Out of curiosity, what do you get post tax in total?
MBB pay 90k base and up to 30k in performance bonus (Bain/BCG pay up to around 20k, McK up to 30k)
90k base comes to 58-63k net in NYC, assuming no additional contributions. If top performer at McK and you got 30k annual, you get about 15k up front and then a few grand back during tax season... safe to assume net 15-20k on 30k bonus.
So we're talking about a post-tax total of 70/80k-ish all in. For a 21/22 year old with no real skillset, that's still some awesome pay. Comparison is the thief of joy amigo
Base is 100k now.
As someone who left MBB a few years ago, I concur: the compensation, especially at the analyst level, sucks compared to peers (though the vast exit options I had made it worth it in the end).
I will say the clear upside to MBB versus banking is a faster promotion path. At M, average of ~3-3.5 YOE to get promoted to EM (probably senior ASC / maybe VP equivalent in banking since you're essentially leading & the point person for a study), and ~8-9 for partner for an average performer (~3.5 for BA-> EM, ~2.5 for EM->AP, ~2-3 for AP-> P)
Also as others have pointed out, the pay only sucks in HCOL cities (aka the largest offices like NY, SF). Pay is actually really good in LCOL cities/offices
Where did you exit 2?
Left for a PM role in big tech
120k isn't bad pay. It's substantially above most post-MBA school averages. It's the hours that suck, but you're also making up those hours with "prestige" and exit opportunities.
The lack of travel is actually hurting your comp. One of the perks of consulting is accruing all the points and miles that subsidize vacations you could never possibly afford otherwise. I spent ~5 years on the road and left consulting several years ago and still haven't paid for a flight or hotel.
Ugh...that sounds awful (that much travel)
not to mention the expense account paying for every meal. it's pretty material especially relative to the junior salary
Interesting. All of my friends in consulting right now are actually glad they're not traveling though
First year at my MBB:
100k base, 25 target bonus, 5% of that total added to 401k, 0-20% of total to profit sharing plan (10% historical average)
First year target comp:
100 base
25 bonus
6.25 401k
12k profit share
10k sign on
=
153k
Not a bad deal. Also: pays the same in Dallas vs NYC, so do some geographical arbitrage
OP here - first of all, 100k base doesn't count bc they just raised base, I don't want to dox myself but my base for the past year was 80-85k. Signing bonus is a one-time thing and should be treated as a relocation bonus (unless you are living with parents, or already own an apt in the city etc.). Also, have never heard a Profit Share for a 1st year analyst. That starts in the EM/CTL/PL level.. My bonus was 30k because I was top bucket but worked quite a few weekends on Partners RFPs and internal firm initatives (gunning for a top MBA so need those good reccs so lifestyle has been terrible)...
Why are you trying to refute the numbers of the standard campus offer? Bain has profit share for ACs.
A signing bonus is part of Year 1 compensation. It’s why we say FAANG pays so much— ridiculous sign on stock grants, etc.
I told you exactly how much a Year 1 BA level makes at MBB. Year 2 is more (sign on bonus is less than the raise from BA1 -> BA2).
*****
Who do you work with? I am asking this because I work at BCG and their performance bonus is only 20k. I work for their Houston office.
Can’t speak to your hours, but mine and almost all of my colleagues at my MBB are no where near IB. 70 hours is a very bad week in consulting. 60 is much more common and experienced consultants can do less. Getting paid $120k vs $160k is 100% worth it for being able to have a life.
How have the hours been during COVID? If it's ~60 hours not including travel (in pre-COVID times), that is still incredibly taxing, even if not quite as taxing as IB.
It is incomparable to banking. You have your weekends off. That means you have an off switch from work. Banking is a completely different lifestyle that shouldn't even be compared to consulting tbh.
Banking pay was 200-300 for analysts this past year for analysts banking pay has never been as low as 160 unless your bottom bucket at a low paying BB but even then I don’t imagine 160. 120 is the max in consulting at a top firm you have to compare it to the max in banking at a top firms which would be 250-300k at EBs top buckets. Hours are 50-70 hours in consulting compared to 70-100 hours in banking so the hours are definitely way more you are absolutely correct on that.
Current MBB 1st year analyst that lives with IB roommates and feel like there’s a major difference in lifestyle which makes up for the lower salary. For example, I’ve worked maybe 1-2 weekends this past year whereas my roommates have been working most weekends. I have the flexibility of confirming trips / vacations with our other friends while they can’t, etc.
OP here - first of all, 100k base doesn't count bc they just raised base, I don't want to dox myself but my base for the past year was 80-85k. Signing bonus is a one-time thing and should be treated as a relocation bonus (unless you are living with parents, or already own an apt in the city etc.). Also, have never heard a Profit Share for a 1st year analyst. That starts in the EM/CTL/PL level.. My bonus was 30k because I was top bucket but worked quite a few weekends on Partners RFPs and internal firm initatives (gunning for a top MBA so need those good reccs so lifestyle has been terrible)...
So you're doing it to yourself
Can someone give first hand report on Mckinsey all in comp for first year analysts?
Above post had an " MBB" at 153k all in. That surprised me to the upside a bit..anyone have any other data points?
That's not TC, that's all-in including sign-on bonus, 401k, etc. If we went by that metric many first year SWEs would be making ~250k comp all-in.
Base + bonus is now ~115k average (~130k for top performers) as of a recent base raise irc. Used to be ~90-95k average just 3 years ago
OP here - first of all, 100k base doesn't count bc they just raised base, I don't want to dox myself but my base for the past year was 80-85k. Signing bonus is a one-time thing and should be treated as a relocation bonus (unless you are living with parents, or already own an apt in the city etc.). Also, have never heard a Profit Share for a 1st year analyst. That starts in the EM/CTL/PL level.. My bonus was 30k because I was top bucket but worked quite a few weekends on Partners RFPs and internal firm initatives (gunning for a top MBA so need those good reccs so lifestyle has been terrible)...
Above post is off. Also, signing bonus should not be treated as a relocation bonus, since there's a separate relocation bonus. 401k should definitely count as part of total comp since it vests immediately.
New base for UG campus hires is 100k, I think signing is 5k. 401k contribution (also called profit sharing) is 7.5%, so 7.5k. No performance bonus for first calendar year (usually starting mid August) and "well performing" bonus for second calendar year is about 15k. So accrued comp for average performer over first 12 months is about 123k.
Just signed FT offer for BCG and Target TC is ~$125k
If you’re counting your 401k and signing bonus then yes. But target comp for first year at BCG is now $110k if you aren’t counting those things. And that’s on full year bonus not stub.
Hey! Consultants at MNB are in it for the training and the opportunity to become c-suite leaders one day. Comp isn’t what’s important to young consultants, if it was you would have tried IB out of college. No complaining please.
The overall mindset and skill set of IB and Consulting are different. It’s not as if this salary should be shocking; it’s already been known MBB pays $85-90k with $10-30k bonus and it’s already been known that even if MBB has busy seasons, the average horus in most banks is significantly worse. I’m not making bank since I’m at a T2, but I work stable hours and enjoy my time out of work. If you genuinely believe you’re underpaid for hours worked, feel free to compare hourly wage, but not just to those that broke into the most lucrative fields in the world of finance, but overall.
Accounting firms pay below minimum wage after considering hours worked at Big 4, IB firms average 80-90 hours for that salary bump, and many, many other jobs don’t have salaries close to MBB not their exits.
Hey FinesseGod, have been following you for a while. Nice to see that you have ended up at a T2 firm, what type of work/projects are you getting exposed to in Toronto?
Apologies, I’ve been busy. Send me a pm and I can go into depth about my work.
What are your hours?
What percent of Mckinsey BAs get what bucket of bonus (ie 15 vs 20 vs 30k)
Typically the vast majority of employees fall in the middle bucket. I would say between 60 and 70 percent at most firms.
Surprised nobody has talked about the business model. IB is all about volume and size - lucrative fees are charged up front, and that's why it's a grind factory working 80/90 hours a week on average throughout the year; you are always expected to be on and churning.
I know some consultancies do fees rather than billable hours or w/e, but it's still just not comparable given the time/demand/length of consulting engagements - you can't staff a consultant on as many engagements as you can with IBD analysts. The work is less intellectually demanding/intentful at the junior level in banking, which means more "value" can be extracted by cross-staffing analysts and just jamming through deals.
So, of course IBD is going to pay more, what do you expect? When you consider how much more stable your lifestyle is in consulting (predictability, sleep, travel, time off, weekends, etc.) it more than makes up for the compensation gap.. IMO. Regardless, I think it's misguided and naive to complain about this when you look at it this way - consultants never made as much as bankers, and it makes 100% sense why.
Sorry to hear that your hours have been fucked due to covid, the line between work/home has now been completely blurred - so I understand your frustration. These aren't normal times though.
The entitlement on this website is fucking insane.
YOU ARE 22 YEARS OLD AND MAKING >$100k TO DRAFT PPT SLIDES FOR 60 HRS A WEEK.
Seriously shut the fuck up. Nobody fucking cares whether a snot nosed 22 year old gets paid a few extra bucks less than the slaves in IB or SWE nerds in tech. You have the rest of your fucking career to amp up your income. Stop counting pennies like a bitch. Save what you can, learn as much as possible and make the right career moves.
But Google also gives free lunch and that's where I draw the line.
the perks apply to all office workers my guy, just exit to a standard Corp gig at one of those tech companies if you actually give a rat’s ass.
They don't during the pandemic. And I know pre-Covid, McKinsey has a cafeteria where they give free meals and snacks when you're at the office (and obviously you could expense all your meals when you travel).
>22 years old with no real life experiences
>close to negative value to the firm as you are still extremely junior and learning
>making more than the average American
>can make partner in like 10 years where you’ll be clearing $1m
I swear some people on this forum are so disconnected from the real world it’s immensely sad.
I think people lack perspective. Yes banking,trading and PE pay substantially more but not everyone can or wants to do those. Also making 6 figures straight out of university is more then most people could ever dream of in their lifetime
If only you guys could have answered “walk me from revenue to free cash flow” more coherently you’d be making a lot more.
Out of curiosity what is your pay for PM at Big Tech.
I'll also add that whilst MBBs do have the great brand name and are known to pay well within the world of large consultancies, there are plenty of boutiques that pay much more. It's similar to finance; stick it out for 2-3 years at a large brand name and then pivot to a boutique that pays well.
Consulting is Paradise
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