Exploding Offer Decision McKinsey vs. BAML IB

An MBA here at a M7 school trying to decide between 2 internship offers for this summer, one at McKinsey NY and another at BAML IB in the TMT. McKinsey is offering 165k prorated for the summer vs 150k for BAML. How do you think the hours compare? I heard that if you count in the travel time it's pretty much the same hourly rate.

Long-term I can see both having good exit opps with PE and a senior mgmt role but what does the salary progression compare between the 2?

Comments (12)

Feb 12, 2019

Not too sure about salary progression, but was faced a similar situation previously too. One point to consider though, is the fact that while BAML is a great firm, it is definitely not in the highest tier among investment banks (Tier 2), whereas the same cannot be said for McKinsey, which is the highest even in its band (Tier 1).

So in terms of exit opps, there may be some distinction between the two, where one has broader and better exit options.

Salary wise, IB usually pays better than consulting for MBAs out of school. It flattens out across the years.

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Feb 15, 2019

Assuming OP actually stays more than 2-3 years at either role, he will make considerably more as a banker than as a consultant, even at McKinsey.

Feb 12, 2019

No material gap 1st year. Gap widens aggressively after year 2. If $ is your main driver go to BAML. Congrats for getting both offers - you can't take a wrong decision.

Feb 12, 2019

depends...what did you do before B-school?

just google it...you're welcome

Most Helpful
Feb 12, 2019

Think long term.

I'd argue it depends on what you want to do. If you're dead-set on Finance do BAML.

If you aren't certain what your long term role will be then do McKinsey.

IB lets you do almost anything in finance, whereas McKinsey will open up almost any business career track outside of finance (or possibly even inside depending on your project work).

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Feb 12, 2019
Attack_Chihuahua:

Think long term.

I'd argue it depends on what you want to do. If you're dead-set on Finance do BAML.

If you aren't certain what your long term role will be then do McKinsey.

IB lets you do almost anything in finance, whereas McKinsey will open up almost any business career track outside of finance (or possibly even inside depending on your project work).

Thank you what do you think about the hours and stress at McKinsey? I heard that first year associates work just as many hours as bankers when you add in the travel time?

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Feb 12, 2019

You probably work similar hours (travel included) Monday through Thursday. The difference comes on Friday or Saturday when your jackass of an MD at BAML wants to turn a deck multiple times over the weekend and your Friday night and Saturday blow up. This is much more rare at McKinsey, though shit will occasionally hit the fan.

I also think consulting generally has a more forgiving culture. If you bust your ass a few days in a row and there is nothing that needs to be done immediately, your McK engagement manager will be more likely to give you the night off than your VP/staffer at BAML who will probably just throw you into something else.

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Feb 12, 2019

i know an MD at one of the Banks who started out in mgmt consulting. Consulting does not cut you off from banking.

just google it...you're welcome

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Feb 14, 2019

I would echo the point about relative rank in the industries. In management consulting McKinsey is the #1 brand. In IB BAML is a great firm but its in the second tier of the BB banks, still probably at or near the top of its tier but it isn't tier 1.

One thing about traveling for consulting is, you might not be working during the hours you travel. If you are like me and traveling isn't too exhausting for you, this could give you a few hours to unwind and watch a movie or read, get some time to yourself. I remember someone mentioned this in an old thread talking about why the travel doesn't exhaust them.

Just my $0.02, I am going the banking route but considered Consulting for a short period.

"If you ain't first, you're last!" - GOAT

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Feb 15, 2019

Can you explain how you were able to recruit/network for Investment Banking and Consulting at the same time? My impression was that it was pretty much impossible to do this because the timelines are the same, and you would be putting in partial effort in one while your classmates would be going 100% for either IB/Consulting.

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Feb 14, 2019

I've heard that the jump at the post-MBA role from IB to PE poses a more difficult transition than it is going straight from undergrad, so if that's your goal I would take that into consideration and speak with people in the know about your odds.

Echoing Attack_Chiahuahua here - if you're certain you want to be in finance, take BAML. Otherwise, take McK. The skills you learn and the work you do materially differ enough such that you can weigh the options dichotomously.

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Feb 15, 2019
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