Consulting vs Equity Research - Is the prestige of consulting worth $25k per year in opportunity cost?
I want everyone's opinion on this. I have the opportunity to go into s&o consulting at Deloitte (possibly MBB if I kill it this fall) or choose to go into Middle Market Equity Research (less prestigious middle market brand).
ER: all-in comp probably around $105k after bonus
Consulting: all-in comp will be $80k
What do you all think? Is the Extra $25K at the middle market bank worth the prestige of consulting?
ER and consulting are pretty different jobs, I would go with whichever you liked to do more.
A question I'd like to add to that;
Do pay differentials decline after the junior years? I find it hard to believe an analyst in ER would make more than a partner in a comparable consulting firm right?
Btw, taking into account that ER and consulting have quite similar work hours (correct me if I'm wrong), the pay differential is really quite significant.
At the senior levels the pay is similar, from the info I've gathered. But for Equity Research, you will out-earn your counterpart in consulting for the first 5 years. At my MM Bank, Equity Research comp is the same as IBD comp for junior folks.
And yea, work hours are similar... hence my dilemma haha
Sounds like you're in a good position.
Although 25k may sound like a lot to you now, think about what that will mean to you in a few years time. Very, very few people stay in MC or ER for their entire career. I would base my decision on 3 key factors.
1) Where do you see yourself in 5, 10, 15 years? Buy side? Then go for ER. F500? MC. PE? Both could be interesting. It really depends on which you prefer.
2) Also, Brand Name is something that's crucial at the beginning of your career, unless you plan on applying to a BB next year, then Deloitte (MBB is a no brainer) sounds like a wiser call - whether or not you go for an MBA later on.
3) Finally, there really are many practical aspects you may want to take into account: do you mind travelling a lot for work? is having a life outside the office essential to you? do you prefer working in a team or on your own? do prefer very hierarchical or looser environments? etc...
Hope this helps.
@"teacherspet" your post was helpful. I still have some time before accepting my current offer and I'll be thinking about the tidbits you shared. In the short term, the money definitely makes it a challenging decision.
If you need to ask that question, you're asking the wrong question.
I am trying to learn, would you expand on your point?
In my eyes, I would enjoy either career, the hours are similar, and the major differences are "Consulting - Better Brand" vs. "Average MM Bank - $25K/yr More"
Good thread, but have you also considered travel? If you're fine being on the road 45+ weeks of the year, Deloitte/MBB probably the way to go. ER travel from what I understand is significantly less (perhaps 30%?). I'm not in ER, so my understanding could be off...
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