MBB Pay Raises?
After seeing GS increase starting salary (with most banks already having done so), and with tech companies already offering much higher compensation packages, will MBB increase salaries to stay competitive? Otherwise, why would a student choose MBB over tech or IB if that means 50-60K less in comp?
Bump
I think it's unlikely:
a) MBB view their main value proposition as the apprenticeship model accelerating your career + trying a bunch of different things. Undergrads chasing money already were choosing banking before, and undergrads chasing lifestyle were already going for tech. I think the world of people who recruit banking + consulting AND would be swayed one way by a ~10k change in starting salary is small.
b) The rumor I've heard was the bonuses would be lower to compensate for higher salaries, so the total compensation for banking analysts would not be that much higher than normal
Re: smaller bonuses, not all banks have come out yet, but based on the ones that have, that's certainly not held true. Higher bases + higher bonuses due to the ridiculous deal volume lately
That’s this year. I very much doubt that next years bonuses will be near as high.
Regarding a), it seems many banks are increasing base salaries by 25k or so. See thread: https://www.wallstreetoasis.com/forums/updated-benchmarking-ib-analyst-…;
Regarding b), this seems interesting. Wouldn't put it past IB management to do something like this. We'll see when the first paychecks start hitting next year.
Not really re tech. People in tech never thought of consulting/IB in the first place
Wouldn't agree with that. Tons of my people in my BA/AC/A class from ~5 years ago that interned in tech as SWE (or at least did the freshman / soph programs like G's Eng Practicum)
Disagree here. It’s significantly more than a 10k raise. And the same people looking at top banks are also looking at top consulting programs. There’s a lot of overlap.
It would make sense for MBB to follow suit, since the salary schism b/t IB and consulting was already not inconsequential. That being said, I'm not sure if they are actually going to take action. They would likely need some pushing.
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Source and which regions? I work at one of those (NA) and only received bonus no pay raise
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Wrong — BCG did significant raises for managers and up literally just a few months ago
I thought this thread was about entry level salaries, either BA or Associate. Manager salary bump is nice but >50% of people will be gone before then.
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MBB raised base salaries from $90,000 to $100,000 last month
Neither raised compensation at post-UG or post-MBA levels in the US.
MBB raised base salaries from $90,000 to $100,000 for entry level.
Yes, they have both raised post-UG and post-MBA comp in the US in the month since I posted that comment. Thanks for the MS.
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MBB needs to raise base if they want to compete for those on the fence between consulting and banking (and there's plenty of those - just look at the number of wso threads on this topic). even though banking bonuses are higher, base has tracked fairly closely at around 85-90k between both industries. this is a matter of capturing that portion of candidates to whom the extra 10-15k has material impact, maybe bc they have a bunch of student debt or a family to support
lmao most kids doing IB or consulting aren't low income, just not a significant amount for MBB to care about
MBB and other consulting firms like EYP/LEK/S&/OW probably won't raise the salary at all because consulting pay is still relatively high, and at the same time, the biggest trade off is that you'll get to sleep 8 hours on average, unlike banking. Also the COVID high ass bonuses are going to likely be a 1-2x thing, not worth for consulting to raise the salary if its not a long term thing
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S& did not raise base
I know for a fact that BCG raised post mba salaries in London from around 90-95 to 109 GBP. Heard they were going from 165 —> 200 in the US (same percentage bump) but unsure if this has materialized.
Announced today, BCG North America base salaries increased by $10k for junior levels, which will be effective as of October 2021 (US$ thousands p.a.):
A1: 100
A2: 103
SA: 130
C1: 175
C2: 185
BCG is also getting one-time bonuses in October and expects a high bonus pool, which will be derived off the new base salaries above
Do you know if this included Canada? I think before this BCG Canada was ~85 CAD vs 90 USD in US offices
According to Fishbowl, BCG just raised associate (entry-level) salaries to 100K base in US.
BCG raised associate base to 100k from 90 today
Any love for Asia?
Bump - are Bain/McK gonna match BCG's raise?
They definitely will. No chance Bain and McKinsey head into undergrad campus recruiting offering a $10K less base.
Bump
I just signed with Bain, and the person responsible for AC recruiting in my future office texted me today to tell me that everyone is getting a raise (to match other firms)
Yup I got notified from my recruiter as well about the base increase for Bain.
McKinsey also announced that they're matching
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