Is anyone else concerned that McKinsey is paying nearly 800 million in fines this year??
Apologies if this is a stupid question but is anyone concerned about the news that McKinsey is paying 650 million for the opioids case? This is less than a week after news that they are paying 120 million for bribery in South Africa. I am an incoming BA at McKinsey and seeing this news coupled with rumors that business at the firm is slowing down, mass layoffs in their greater China practice, smallest partner promotion class ever, etc. makes me question my decision of turning down a top HF for McKinsey...
Incoming BA who chose them over BCG.
A tiny bit worried, but also these fines were expected for the past like 5 years, so would be highly surprised if their insurance or war chest would be hit.
Honestly, it's good that they are getting these fines done now, instead of later since these were the major scandals in the past decade they had to pay for.
Yeah I’m just happy I’m early enough in my career at McK that these payments will blow over and the firm will grow stronger / rebuild by the time I qualify for bigger bonuses and profit share
That was not such a smart move in any case. Anyway the $600m opioid fine is spread out across 5 years (to be paid with interest). The bigger thing you should be worried about is if you want to be associated with their brand / if you have no moral issues working for them.
You should not be worried. The settlement is more like a W than everything that could have happened if the settlement never occured (further lawsuits, potential to be banned from all public work if indicted, etc.).
Business in consulting is also quiet balanced again, as hiring was very slow and a lot of people also let go.
You will have a blast.
As with most things, I think some of this is overblown and some is valid
smallest group of partners: it is not the smallest partnership class ever, it was reported as the smallest group “in years”. Which makes sense? You’d expect it to be smaller than it was at the Covid peak. I’d be concerned if it wasn’t
china: I don’t have internal knowledge but the situation doesn’t look good. Not great if you’re based out East, but if you’re in Europe/ NA as I expect you are, doesn’t affect you until you make SP
opioid fines: on one hand, there’s been a collective sigh of relief amongst the senior folks I work with. We can now move on from a pretty sordid chapter in our history. Again, only really affects SPs (and maybe Ps). It’s a big number, but also less than 5% of annual revenue.
business slowing down: yes it’s probably slower than peak covid. No it’s significantly hotter than 2 years ago and trajectory is going up. We’re getting EMs advertising studies in open internal forums now, whereas even a year ago EMs would have their pick of BAs to choose from
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