Thinking out lateralling out of IBD into MBB, how to get used to salary decrease?

Maybe I should've posted this in the consulting forum, but has any first/second years here lateralled out from IBD to MBB? I'm at a bank making street salary+, but for a better WLB, I'm considering a lateral to MBB.

Everything about consulting seems better (grass is always greener though...) but the pay decrease is absurd at this point. I'm expecting a total comp of 240+ this year but how do I justify $100K less in total comp?

In terms of background, I have a good resume and an Ivy on my resume, but there are two things I worry about. I come from a lower-middle class family and I pay for a lot of things in my family, like funeral expenses. I can't do that anymore with a consultant's comp. Exit opps become a lot hazier too and I could see PE firms having issues with me dropping out of IBD, if I ever decide to want to go back to finance.

Any thoughts?

Comments (4)

  • Associate 3 in IB-M&A
Jan 3, 2022 - 2:22pm

Any consideration towards MM/LMM PE? If you are very careful to diligence WLB, that could be a compromise and still keep your salary up a bit. Obviously selection bias here but I think the work is significantly more boring in consulting, and WLB is nearly as bad as IB when you include travel. 

240 comp as an analyst is not gonna be achievable anywhere else. Most analysts in 2017-2020 made $140k on a good year... that is still plenty of money and unless you are balling out on rent or burying your whole family I can't follow your train of thought that you will struggle on that amount.

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  • Analyst 1 in IB - Cov
Jan 3, 2022 - 2:30pm

Considered MM/LMM PE for sure, but 1. if I ever did move to the buy-side, I'd rather start upmarket so I have the freedom to move downstream vs. struggle to go upstream (for whatever reason) 2. Haze around culture/WLB at smaller shops. It's just hard to get a good sense on what a firm is actually like unless I talk to some associates who recently left. I don't want to waste time interviewing and working, just to find out I was lied to. It's pretty to get a sense of what it's like at a place like McKinsey and Warburg.

The WLB may be similar, but I value the full weekend, especially since I'm working most of Saturday and Sunday now anyways. Regarding comp, I don't think my salary will ever fall below $200K at this point, especially if I stay. MBB comp is obviously still very very high, but I'm responsible for helping pay my younger siblings' student loans so I need all the help I can get (luckily we're poor enough and they were smart enough to go to schools that gives 100% need-based aid, so it's not too bad)

  • Analyst 1 in PE - LBOs
Jan 3, 2022 - 3:02pm

Why do you think you're responsible for your siblings student loans? You're neither morally or legally responsible for their debt, unless you co-signed for them. This kind of financial support early on could lead to a lot of financial reliance later on in life that could greatly harm your relationship with them and may ultimately lead to resentment. Not worth the supposed "help" you're providing them in the short term in an attempt to feel better about yourself IMO.

  • Analyst 1 in IB - Cov
Jan 3, 2022 - 4:36pm

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