MBB vs. Top Canadian Pension (CPP/OTPP)

Based on the most helpful WSO content, here's what you need to consider:

1. Upward Mobility:

   • MBB consulting firms (McKinsey, Bain, BCG) are known for their structured career progression, but they operate on an "up or out" model. Around 20% of hires get directly promoted, while others either leave for other opportunities or pursue MBAs.
   • Canadian pensions like CPP and OTPP are indeed top-heavy, and promotions can be slower compared to MBB. For example, CPPIB promotes on a 4-year cycle, whereas investment banks and consulting firms often promote on a 3-year cycle. This could limit upward mobility in the short term.

2. Long-Term Net Worth:

   • MBB offers strong exit opportunities, especially for roles in private equity, corporate strategy, or even entrepreneurship. However, the pay at the entry level is lower compared to finance roles.
   • CPP/OTPP roles, particularly in private capital, offer competitive compensation and a better work-life balance. While you won't get carry (profit-sharing) at pensions, the long-term cash salary can be substantial, with some roles reaching $500k+ in the long term. However, the lack of carry could limit your upside compared to traditional private equity roles.

3. Exit Opportunities:

   • MBB provides broader exit opportunities across industries, including finance, startups, and public sector roles. Bain, for instance, has a Private Equity Group (PEG) rotation that can give you a slight edge for PE exits.
   • CPP/OTPP exits are more niche and often limited to other buy-side roles or staying within the pension ecosystem. Many talented Canadians who return from US banking stints often see CPP/OTPP as the "exit" itself due to the limited number of reputable buy-side seats in Canada.

4. Work-Life Balance:

   • CPP/OTPP offers a significantly better work-life balance (e.g., 9-6/7 with minimal weekend work) compared to MBB, where hours can be demanding, especially during peak project cycles.

Recommendation:
If your primary goal is maximizing long-term net worth and upward mobility, MBB might be the better choice due to its broader exit opportunities and faster career progression. However, if you value work-life balance and are comfortable with a more stable, long-term role, CPP/OTPP could be a great fit, especially if you're already inclined toward finance.

Sources: Canadian Junior Bankers - Where are you going?, What is Canada comp like?, CPP Investment Board 2020 Updated Reputation and Exits?, IBD vs. MM PE vs. CPPIB/ OTPP/ PSP/ CDPQ, Q&A: Strategy consulting Associate Partner offering career advice