Long-term career possibilities in finance, consulting and law VS audit and tax accountants?
Basically, I was looking around on Linkedin and I realized that many people who are MD at BB/EB, Partners at MBB and Partners in Biglaw generally have MBB or Biglaw?
A possible reason could be that since BB/EB/MBB skills are more varied and tangible than Audit/Tax (no offence anyone in those positions), lots of MDs are either poached by companies in high strategy or finance positions (very common in consulting) or go and start their own boutiques. I know little about the tax/audit world but I don't think you have many small boutiques that could offer good services compared to IB/MC.
Combination of: higher pay (earlier retirement), more sought after by executive search firms, burnout (hours and stakes are much higher in IB/SC/BigLaw than Big4) and less stable (always have to perform highly vs at the big4).
Making partner in the big4 isn't as big of a deal as making MD/Partner in IB/SC/Law. There are so many layers of partners and so many different divisions/offices that you could reasonably grow through partnership starting from junior (newly-minted) to leading an office over a long period of time. That's less of a case with banking (far fewer group head and division head positions) and definitely less in strategy consulting and law.
Also, just pure economics. A newly minted partner at the big4 makes ~$300k which locksteps up in $50k increments to $600k and reaches homeostasis at $650-800k as a line partner. A new MD pulls $1-1.5m, a new partner pulls ~$1m in strat and a new partner in BigLaw pulls ~$450-600k - these numbers grow as you get better at your job and produce. It would take the big4 partner nearly a full decade or more to reach the same compensation. The former are going to have more money saved up in the time that it takes the Big4 partner to catch up comp wise.
Thanks for the answer! Though I do have a couple more questions if you don't mind me asking.
Would you know about Big 4 Consulting Partners? Is their comp more similar to that of an MBB Partner or Big 4 Audit Partner?
Also, if we took an average MD or Partner at MBB just how brutal is the firm to senior consultants and bankers? For example an MD or Partner who has been at an BB/EB/MBB ever since being an analyst, would he be given chances if he fails to produce business and revenues or is it as cut-throat as some people describe?
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