The Truth Behind Business Consulting and Management Consulting ...

This is a topic many people are dying to learn more about.

The data is from my own consulting experience, current consulting friends, and publicly available sources. They should be pretty close to the real numbers.

Here they are!

1st year out of college undergraduate:

Base salaries: $50-65K
Signing bonuses: $5-10K
Relocation/moving expenses: $5-10K
Year-end bonus: $5-10K

Thats an average of $70-75K in first year compensation. As a summer intern, you can expect a comparable, pro-rated salary (minus the bonuses). Please note that this does not include retirement contributions.

First year out of business school/MBA:

Base salaries: $110-140K
Signing bonuses: $20-40K
Relocation/moving expenses: $10-20K
Year-end bonus: $20-40K

Thats an average of $160-200K in total first year compensation. Please note that this does not include retirement contributions.

Upward track through partner:

My numbers have a higher risk of being inaccurate as this is only from personal anecdotes, so if you have better information, please let me know.

Engagement manager/Project leader: $175-250K
Associate principal/Senior project leader: $250-400K
Partner/Principal: $500-800K
Senior partner/Director: $1M plus

At more senior levels the pay is increasingly performance-based

How consulting salaries lose to finance:

At almost every position as a management consultant, your salary will be 30-50% lower than a comparable position in investment banking. This varies by year and median salaries in non-banking departments (such as research, asset management, sales & trading) are lower. The truth is simple: consulting is not a profession to make big bucks.

How consulting firms make up the lower salaries:

Better benefits ? healthcare, life insurance, etc Retirement contributions ? this one is important because at McKinsey/Bain/BCG, theyll contribute an added 5-10% of your base salary to your retirement funds, effectively a 5-10% year-end bonus! (A reader just informed me that his McKinsey/Bain/BCG retirement contribution starting fulltime in 09 was 4.5%, which is lower than Id seen in previous years) More generous reimbursement policies, travel perks, etc

Hope you found that informative. Good luck breaking into consulting.

Source: http://www.nyzx.net/the-truth-behind-business-consulting-and-management-consulting-salaries.html

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