Something a lot of people are dying to know.
The data is from my own consulting experience, current consulting friends, and publicly available sources. They should be pretty close to the real numbers.
Two resources Ive found valuable are my blog – Management Consulted – and wallstreetoasis.com
Here are the numbers.
1st year out of college undergraduate:
Base salaries: $50-65K Signing bonuses: $5-10K Relocation/moving expenses: $5-10K Year-end bonus: $5-10K depending on firm
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.
Continued progression through partner:
My numbers have a higher risk of being inaccurate as this is only from personal anecdotes – so take them with a grain of salt
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 variable and performance-based
How consulting salaries lose to finance:
At almost every tenure in consulting, your salary will be 30-50% lower than a comparable position in investment banking. This varies by year, of course, and median salaries in non-banking departments (such as research, asset management, sales & trading) are lower. But the truth is, consulting is not a profession to make big bucks. Especially relative to finance.
How consulting firms make up the lower salaries:
Better benefits – healthcare, life insurance Retirement contributions – this one is important because at places like Boston Consulting Group, 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 MBB retirement contribution starting fulltime in 09 was 4.5%, which is lower than Id seen in previous years) More generous expense/reimbursement policies, travel perks, etc
Hope everyone found that informative. Good luck breaking into consulting.
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