MBB Exit Rationale?
As consulting exit opps can be so varied with different companies etc. It seems harder to characterise vs banking
Do MBB consultants and consultants generally tend to exit into sameish pay with better work life balance (this includes less travel) or better pay and better work life balance, just better pay...
I would have thought a fair few of operational exit roles, especially senior ones at the consulting firm's client would pay far more than consulting?
Would appreciate any industry insights
Thanks so much in advance!
from what i can tell, analyst and associate exits will typically be both higher pay and better WLB (that's the whole point of MBB as career accelerator, I think), but manager and up can be dicey in terms of whether you'll need to take a pay cut or not. once you're a partner though, i'd imagine any exit would HAVE to pay better for you to leave
I think the biggest thing to keep in mind is that there's like a 30-40% pay difference between equivalent levels in consulting and banking (e.g. 100 vs. 150 total comp at the analyst level) so to take a pay cut from that would be... pretty awful
Partner is up or out too. Lots of partners get asked to leave and take pay cuts. It's pretty rare to find exits that pay more.
Considering there are few partners as proportion of people in consulting, don't the few that make it have decent shots at becoming CEO at another company - think Jane Corbat ex McKinsey, now Citigroup CEO, Kevin Mayer ex LEK now Disney CEO etc?
...no?
I mean they have a better shot than many other people, but it’s not like it’s super common either. And remember Jane Fraser (Michael Corbat is a different person) spent 15 years in the banking industry before getting the CEO job, it’s not like she stepped down as a McKinsey partner and into the CEO chair the next day. That happens occasionally but it’s A) not common and B) often ends badly (two notable examples of McKinsey partners who did that are Jeff Skilling and J Michael Pearson, after all).
There are a lot of partners in consulting. That’s kind of the point, it’s why people are in the job. You have a ~10-15% chance of making partner as a new consultant in MBB... how many other jobs give you that kind of shot at a 7 figure salary?
People leave MBB for all kinds of exits, because MBBers are all kinds of people.
Some people leave for better pay. Some leave for better WLB. Some leave for worse pay and worse WLB. Some leave to go run something or found something. Some have bad luck despite all the hype around MBB exit ops and end up in harder jobs for worse pay. People leave for all kinds of reasons, to all kinds of exits, and have all kinds of luck when they go.
Let me rephrase, is there a relatively clear path to achieving better pay and WLB, or one of the 2, by exiting as MBB/Tier 2 if you want to (excluding exiting to start-up where pay is certainly less) or is it quite random what you end up getting. I agree that consultants tend to be more diverse in what they do after some do government etc. but that is more self selection than exit opportunities.
Like in banking there is a very clear path of you can go to PE, AM, HF and if your a solid analyst at a good bank, you'll place decently well and its pretty clear.
Just trying to get a better idea of paths
Ah gotcha.
Yes, there absolutely is. If you want to follow the well-defined-paths model, with a little luck you can leave after 3 years as a consultant to a corporate exit working 45 hours and making $200k+ all in (location and industry dependent, some exits pay more). That’s not a gunner job, you’re stepping off the huge raises every year track if you do that, but lots of folks choose exits like that.
The higher pay exit is harder; not a lot of fields pay more than MBB.
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