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?

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Comments (45)

Most Helpful
Aug 8, 2021 - 6:52pm

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

  • Intern in IB - Gen
Aug 8, 2021 - 7:07pm

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

  • Associate 1 in IB - Cov
Aug 8, 2021 - 8:32pm

That's this year. I very much doubt that next years bonuses will be near as high. 

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  • Analyst 2 in IB - DCM
Aug 9, 2021 - 2:02pm

Not really re tech. People in tech never thought of consulting/IB in the first place

  • Analyst 1 in Consulting
Aug 9, 2021 - 5:00pm

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)

  • Research Analyst in HF - Other
Aug 8, 2021 - 7:11pm

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.

  • Associate 2 in PE - LBOs
Aug 9, 2021 - 2:35am

Why would they? If anything they compete against tech and there's no further gap than previously. Overlap between IB and Consulting pools is limited 

Aug 9, 2021 - 10:58am

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

  • Intern in IB-M&A
Aug 9, 2021 - 2:37pm

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

Aug 11, 2021 - 3:49pm

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

Aug 18, 2021 - 9:57pm

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) 

Sep 3, 2021 - 12:08am

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