Comments (37)

Mar 4, 2013

Half their age plus seven times a million.

Seriously, you think that MBB partner comp is simple enough (or widely known enough) to be explained in a WSO post?

Yes, the variable portion of the comp can be/is well over 100% of the salary portion. This starts becoming true even at the rank below partner.

Mar 4, 2013

Ask Marty Conn

Mar 4, 2013
yeahright:

Ask Marty Conn

How much does Conn & Associates pay for base out of college? Exit opps?!?!!?

Mar 4, 2013
kidflash:
yeahright:

Ask Marty Conn

How much does Conn & Associates pay for base out of college? Exit opps?!?!!?

They aren't gonna hire either or you two when you can't even spell his last name right.

In all seriousness though, how well do you think Kaan & Associates places into top MBA programs?

I would agree with you, but then we'd both be wrong.

Mar 5, 2013

Former Firmsconsulting podcast "I don't know where they get the idea partners make $1-6 million, most I knew were $500-600k" and the same former partner said he was offered ~$750k to move to a Big 4 partner position.

Honestly, $500-600k seems quite reasonable for a number of reasons, the biggest being there isn't non-stop work all the time, there is internal firm costs etc.

For a simple average just look at the margins of the industry (last I saw professional services was ~18%), but if you bump that up for economies of scale / premium pricing etc. that should end around 30%. Wiki has $5BB as their estmated revenue, and 9,000 consultants (estimate say a ratio of 1:10 staff to partners) gives 900 global partners (as if I have a clue) and a pool of $2.3mm per partner. That being said, McKinsey has 11,000 IFS/research type staff apparently, so their margins could be lower. Some partners make more, some make less....

I believe PwC USA once issued a release about their earnings and it ws ~$650k/partner, and the PwC UK routinely shares their revenues/partner ($1.5mm???) so whatever margins come out of that.

All being said and done, don't think about the end game. Come in with the goal of doing some good for the client and enjoying yourself. If you one day get partner because you worked hard, enjoyed it and acted ethically then you get it. If not, learn lots and enjoy being well paid for a job many people want.

TT

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Mar 5, 2013

MBB partners make MUCH more than 5-600k. That number is ridiculous considering post-MBA comp starts at ~200k, the amount of work they do (partner life usually sucks), and how valuable they are to the firm.

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Mar 6, 2013

Go to firmsconsulting.com, sign-up for the podcasts, and I believe #46 has the discussion. No, not *all* make $500-600k, but that is around where they start, and they have a turnover even at that level, funding of firm growth comes from the partnership pool, as well as there are more senior partners....yes, the average (weighted) is likely in that range. The median may be different.

Considering even their Partnership is a relatively up and own culture (or so I've been told) there is likely high turnover of new partners (

And lastly, the person above me missed the point. This is not a job about making money, it's about doing what is best for the client - and that isn't always the most profitable. Pay people well at the entry level to attract the brightest and enough that they can easily focus on the client without financial worries. Then, those that stay with the firm because of their work and cultural fit eventually make it to partner.

If money is your motivator, you're far better off 20+ years down the line at a F500 or Finance.

TT

Mar 7, 2013
TylerT:

Go to firmsconsulting.com, sign-up for the podcasts, and I believe #46 has the discussion. No, not *all* make $500-600k, but that is around where they start, and they have a turnover even at that level, funding of firm growth comes from the partnership pool, as well as there are more senior partners....yes, the average (weighted) is likely in that range. The median may be different.

Considering even their Partnership is a relatively up and own culture (or so I've been told) there is likely high turnover of new partners (

And lastly, the person above me missed the point. This is not a job about making money, it's about doing what is best for the client - and that isn't always the most profitable. Pay people well at the entry level to attract the brightest and enough that they can easily focus on the client without financial worries. Then, those that stay with the firm because of their work and cultural fit eventually make it to partner.

If money is your motivator, you're far better off 20+ years down the line at a F500 or Finance.

TT

Fair, I glossed over the question a bit I think. Yes, junior partners probably have a base in the range of 5-600K but with a fairly low-risk bonus that is similar in size (at minimum). The real money starts kicking in after being a partner for a few years.

While I agree the job is about what's best for the client, most of the MBB partners are incredibly accomplished, valuable to the firm and are excellent at their jobs. As a result, while they make make some compromises for the sake of the firm, they are still very, very well compensated.

Mar 7, 2013

Relatively junior MBB partners (real partners with equity in their firm, not BCG Principals / McKinsey APs) clear in the neighborhood of a million. I have no idea how much of that is salary, but while the bonus is variable, total comp is decently consistent in normal years. So even when you get to the point where your bonus is more than half of your total comp, the less than the entire bonus amount is truly at risk, since you're not going to get $0 unless the firm turns no profit.

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Mar 7, 2013

Out of silver bananas - but wish I could give some to 2x2Matrix and TylerT for actually answering the question instead of the usual troll answers.

@2x2Matrix: You mentioned junior partners at MBB earn in the vicinity of a million (all in). Any idea what tends to be the average or upper range (say for Managing Partners at BCG and Directors at McKinsey)?

Mar 7, 2013

Think I remember reading an article about a MBB partner that cleared around $2-3 million

Mar 7, 2013

Management Consulted posts the following salaries:

- Engagement manager/Project leader: $175-250K
- Associate principal/Senior project leader: $250-400K
- Partner/Principal: $500-800K
- Senior partner/Director: $1M plus

Seems fairly accurate.

The business of business is business.

Mar 7, 2013
Cowfoot:

Management Consulted posts the following salaries:

- Engagement manager/Project leader: $175-250K
- Associate principal/Senior project leader: $250-400K
- Partner/Principal: $500-800K
- Senior partner/Director: $1M plus

Seems fairly accurate.

I'm NOT asking for total compensation; I'm asking for base salary ONLY.

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Mar 7, 2013
xmasboy:
Cowfoot:

Management Consulted posts the following salaries:

- Engagement manager/Project leader: $175-250K
- Associate principal/Senior project leader: $250-400K
- Partner/Principal: $500-800K
- Senior partner/Director: $1M plus

Seems fairly accurate.

I'm NOT asking for total compensation; I'm asking for base salary ONLY.

People answered the question, there is no need to be rude. The information you're even asking for is kind of ridiculous to be honest.

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

WSO is not your personal search function.

Mar 7, 2013
xmasboy:
Cowfoot:

Management Consulted posts the following salaries:

- Engagement manager/Project leader: $175-250K
- Associate principal/Senior project leader: $250-400K
- Partner/Principal: $500-800K
- Senior partner/Director: $1M plus

Seems fairly accurate.

I'm NOT asking for total compensation; I'm asking for base salary ONLY.

To my knowledge, that IS base salary... I know a couple 1st year Engagement Managers/Project Leaders with base 180 and 185, respectively.

Mar 8, 2013

Xmasboy:

Jesus, calm down! Why on earth are you so damn focused on base salary only? Trying to lateral?

From my knowledge bonuses and base salaries at the partner level are highly dependent on track record and especially the partner's rank within the company. Partners with regional responsibilities will make more partners at the junior level.

Base for a new partner at MBB: $5-600,000 seems to be in the ball park. From there it seems to be highly individual.

The business of business is business.

Mar 8, 2013
Cowfoot:

Xmasboy:

Jesus, calm down! Why on earth are you so damn focused on base salary only? Trying to lateral?

From my knowledge bonuses and base salaries at the partner level are highly dependent on track record and especially the partner's rank within the company. Partners with regional responsibilities will make more partners at the junior level.

Base for a new partner at MBB: $5-600,000 seems to be in the ball park. From there it seems to be highly individual.

Can't you tell that I'm "Jesus"-related because I'm Xmasboy?

Mar 8, 2013

Base salary is a less meaningful statistic because your variable comp grows as you become more senior. A top Associate Principal can equal their salary with their bonus, an Associate is not going to do that.

Partner comp structure is highly variable firm by firm. There's a significant drop-off from MBB to Big 4. Senior partners at M take more of the pie than at BB, where comp is more evenly spread across the partnership.

Best Response
Feb 23, 2014

Wow, this is horribly inaccurate information you guys are putting out there. If you have no idea what you are talking about you should not make random crap up.

I work at one of these firms and have seen a scatterplot of every partners comp vs their tenure. The other two firms are roughly the same.

First off, forget base salary, which is a useless measure of comp.

Second, I won't give exact details, but there is not a single partner in a developed economy at MBB who makes 500k or 600K, it would simply never happen. Roughly speaking, the junior guys make 1-3, the senior guys make 2-4. The most junior will cluster around a million (first couple years), and as you progress a few will guys make a bit more than 4, but not many at all.

This is a dramatic departure from big 4 consulting pay, so please don't try and equate the two as they are totally different businesses with different employees and charge much lower fees.

The most interesting thing about consulting comp is that today, at the median level, compared to each similar position at a bank it is slightly higher, and at the average is roughly the same. I know this because I have seen the detailed comp data for every single person at a few of the top banks as a result of my work. Now there are a few guys at a top bank making over 5 mil a year, but they are very few and far between (less than 1% of folks). In reality, typically bank pay is greatly exaggerated as a result of these very few "corner cases".

That of course begs the obvious question, why they hell would you ever work at a bank? Personally I am at a loss ...

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Apr 6, 2014

New partners at my firm in London (second tier but quite strong in the UK) make c.300k GBP as base salary. Senior partners make way more. No clue about the bonus level

Apr 6, 2014

at my current firm's megacity asian office, partnersr make anywhere from 300k to 5m

Apr 6, 2014
whatodowithu:

at my current firm's megacity asian office, partnersr make anywhere from 300k to 5m

It's so variable like that? I mean, there's a difference of 15 between the lowest and highest...

Apr 6, 2014

It's actually a factor of 16 2/3, but yes comp varies a lot.

Apr 6, 2014
DatesExcelModels:

It's actually a factor of 16 2/3, but yes comp varies a lot.

It's solely based on the partner's sales, or there are other factors considered?

Apr 6, 2014

I don't think you have to worry about it.

LMGTFY

http://www.wallstreetoasis.com/forums/base-salary-...
http://www.wallstreetoasis.com/forums/big-4-partne...

These may not be definitive, but there are as good as you'll get around here.

Apr 6, 2014

At my firm, anywhere from 350K - $1.5MM based on seniority, niche expertise, business case.

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

-Warren Buffett

Apr 6, 2014

If you have to ask.. you aren't close enough to be worrying about it

Apr 6, 2014

There's a big difference between Partner pay and Director pay. At least from what I heard at McKinsey, it's the Directors who get paid $1m+ - Partner comp was much lower.

I wrote a bit about it here: http://www.theconsultingcoach.com/advice/what-will...

I previously worked for McKinsey in London and have started a blog about consulting and how to get into it at www.theconsultingcoach.com

Apr 6, 2014
Comment
Apr 6, 2014