Consultant salaries is a topic many readers are dying to learn more about.
I’ve gathered the data from my own experience, consulting colleagues, and public sources. They won’t be 100% accurate but should be pretty close.
One resource I’ve found valuable is the Consulting forums at WallStreetOasis.
First year out of undergraduate:
- Base salaries: $50-65K
- Signing bonuses: $5-10K
- Relocation/moving expenses: $5-10K
- Year-end bonus: $5-10K depending on firm.
That’s an average of $70-75K in first year consulting pay. As a summer intern, you can expect a comparable, pro-rated salary minus bonus. 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 depending on firm.
That’s an average of $160-200K in total first year consulting pay. Again, consulting summer interns should expect a pro-rated portion minus bonus. This does not include retirement contributions. My original estimates were a bit lower, but have been adjusted upward based on emails and the comments below.
Progression 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, email me or comment below
- Engagement manager/Project leader: $175-250K
- Associate principal/Senior project leader: $250-400K
- Partner/Principal: $500-800K
- Senior partner/Director: $1M plus
Senior consultant salaries becomes increasingly variable and performance-based
How consulting salaries lose to finance:
At almost every level, your salary will be 30-50% lower than a comparable position in investment banking. This is variable by year and median salaries in non-banking departments (such as research, asset management, sales & trading) are lower than in banking. But as mentioned in the consulting versus banking post, consulting is not a profession to make big bucks.
How consulting firms compensate for the lower salaries:
- Better benefits – healthcare, life insurance, etc
- Retirement contributions – this one is important because at MBB, they’ll 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 I’d seen in previous years)
- More generous expense/reimbursement policies, travel perks, etc
Stay connected:
I offer resume/CV editing and mock interview preparation. I’ll help you stand out from 1000’s of other applicants, land consulting job offers, and break into management consulting.
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Hi Everyone,
Does anyone know how hard it is to move from Accenture (management consulting, financial & performance management) to MBB? I’ve heard that it can be done but just want to know if it is common. If I am not from a IT background, is it better to go with a small, boutique strategy consultancy or Accenture/deloitte etc in their more strategic divisions?
Thanks
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Hi all,
I would like to pursue a carreer in management consultancy, and I would like some advice, firstly I am 35 years old and have no qualifications, I am thinking of doing an open university course, so my question is, am I too old to start trying to qualify and am I too old to try to start out on this carreer path?
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Kevin Reply:
April 19th, 2010 at 11:42 pm
Leon, to be honest, it’s going to be very tough in your current situation. At best, you may be able to find a position at a boutique consultancy that overlaps closely with your prior work experiences/skillsets. You may consider going back to school – but I’m not sure what an “open university course” is and frankly it doesn’t sound like the kind that would give you access to recruiters at top consulting firms.
I would never say never – after all, if you work hard enough at something I firmly believe you can accomplish it, but the odds are stacked against you.
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Yo Kevin – I’ve been researchin’ career progression in management consultancies. Salary is one piece of the puzzle. The piece I’m looking for is the amount of years it takes to go on to the next promotion, and how common people move up versus being ‘encouraged to leave’ (I.e up or out).
‘Cause I’m already chillin’ here – I’ll go ahead and ask a Q about making a name for oneself and being an entrepreneuer. But I’ll place it on the related post under exit options, to keep things tight and organized.
Kevin, you the man.
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Steve Reply:
April 27th, 2010 at 12:39 pm
Bump-any thoughts on the average number of years it takes to advance in each position
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Kevin Reply:
April 27th, 2010 at 12:50 pm
Steve, it really depends on a lot of factors, but as a rough rule of thumb you can expect 2-4 years per level (it may take longer as you move higher, as there are fewer options and more factors that go into making that decision)
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Steve Reply:
May 17th, 2010 at 10:06 am
Thanks Kevin!
Hey,
I just got an offer for an MBB office in the developing world, at post-undergrad level. I’m getting about $40k including retirement contribution, bonuses, etc. No sign-on or relocation, post-taxes cashflow 1.9k. I studied at a top uni and have got extracurriculars, internships, etc etc.
Is that good enough money for this kind of career, or should I stay in Europe?
Thanks a lot!
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Kevin Reply:
April 24th, 2010 at 8:30 pm
You’ll get paid better in Europe, although not substantially so right out of the gate. I wouldn’t weigh salary too heavily early in your career – focus on what will provide the best learning/training experience possible right now. Later in your life, you’ll be making sums that far outweigh the small differences now.
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Hey Kevin,
Your site is on my feed and my bookmarks, very informative!
I have a question if you don’t mind. I have an B.E. in engineering and a master’s degree in engineering management.
I am expecting to get an offer from a local boutique consulting firm in my country in the Middle East.
My question is if they ask me how much do I expect to be paid I’m hesitant between giving them a range of 35-40k or 40-45k / year (given my Master’s degree and that there are no relocation expenses).
Do you have an idea on the range of salaries for such position in the middle east?
Thanks.
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Kevin Reply:
May 4th, 2010 at 6:54 pm
Hi Samer, unfortunately I can’t help you much here. I’d reach out through your network to consultants at other firms (or even at your target firm) and get their advice. Good luck!
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Are these numbers specific to MBB, or do they apply to say top 10 consulting firms? Can you give generalizations about boutique firms salaries?
Thanks!
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What are the average salaries at MBB in Europe for summer interns (undergraduate)?
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Hi
Would appreciate the advice.
I have a bachelors degree in law and commerce (major in actuarial studies) and have over 3 years experience in a top-tier law firm in the area of property law in Australia.
I am thinking about moving to europe soon and was wondering what my chances are of moving into managment consulting and if I have any chance to do so, what would be the best way of improving it.
Thanks,
Would appreciate the help.
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I currently work in sales in Insurance but have HR Management Consulting Experience, five years in total. I’m also pursuing my MBA part-time and would like to land a position at MBB or another top tier firm upon graduation. Do you have any advice for how I can try to get an opportunity at one of these firms? How can I get in front of recruiters if I’m not at one of their target schools?
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Hi Kevin,
I have a PhD in the Life Sciences and I’ve been a Senior Research Associate for 5 years. Progress in science is too incremental for me now I’m in my 30s, although my research and analytical skills would be a great fit for management consultancy.
I’ve been to an on-campus meet and greet with McKinsey and was assured there that there is active hiring of PhD professionals. What about the other top consultancy firms and boutiques that you mention?
[Reply]
GooGooCon Reply:
May 21st, 2010 at 2:09 am
Hi,
I thought with the wealth of advice available over here, I could get some honest feedback on my next career move, which is quite important in my career.
My Current State: I have a total of 5+ years of experience after my graduation. I graduated in engineering from a prestigious institute in India, known globally. My GPA is just adequate.
Managed to join a Product development company, and worked for the first 2 years as an engineer, and them moved into Technical Implementation, consulting Customers on the technical aspects of implementation. After 1 year, I moved over to UK through an internal transfer and moved on to Functional consulting. Over the last 2+ years worked extensively on consulting customers on their HR and Training processes and functionality of the Product. Work involved travelling all over Europe and sometimes to US and Asia, mostly with the big players.
Aspired Future State: Due to various reasons, like gaining more exposure and have steep learning curve, I wanted to enter pure Management consulting. Another important reason is to increase my earning ability. However, I am also very keen on entering Finance, due to my interest in Math and financial subjects that I learnt on my own during the preparation for CFA. I am scheduled to take CFA level 1 in December. I know finance would probably satisfy my criterion of increasing earning potential, but consulting is something that is very natural to me.
Questions:
1) How easy is to get hired as a lateral hire in management consultancy, esp in the big firms? Do I hold any leverage due to my consulting experience?
2) My low GPA in graduation – Would this matter even now to great deal for management consultancy firms? I am scared of being rejected even in the initial application due to this.. :(
3) Earning Power – Currently I make about 38K + 6K of car allowance = 44 K. Would it increase considerably in the management consulting world? Can I expect at-least 60K upwards?
4) Finance Vs MC – I am totally confused in here… I like both of em. I am thinking of switching to MC and pursue CFA paralelly. Is this a right strategy? or am I better off doing an MBA or MSc Finance?
Sorry for the big post. Thanks in Advance.
[Reply]
hi,
this site is really nice and provided really good information.
If i enter consulting industry after MBA and 5 years of work experience, how long can it take to become a senior consultant? Else, how soon can i cross $300K mark?
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Hi Kevin,
I am a management student from Mumbai, India pursuing a Post Graduate Diploma in Management in Retail. I have 3 years of work experience behind me (in Business and Marketing Research, where I had managed external clients and had a team reporting into me), and currently I am interning (Summer Internship) with Ernst and Young (EY). I am with EY’s Retail and Consumer Product’s division.
Kevin, I have been an average student with 74%, 75% and 55% in my Senior Secondary, Higher Secondary and Graduation, respectively. I am extremely passionate about consulting, particularly management consulting. However, McKinsey, BCG, Bain and A T Kearney do not recruit from my college.
I have a few queries –
1) Is it that they DO NOT consider candidates from colleges that they don’t go to?
2) Is there no way of cutting through as a consultant in any of these firms?
3) What are my chances and is it possible to still get through with my credentials?
4) What would be the ideal way to approach such companies?
I would really appreciate your guidance on this. It is very important for me.
Thanking you with Hope :)
Best regards
[Reply]
Hello Kevin,
I am currently 28 years old and feel as though the only way I can accelerate my progression and salary is to go back to school. After college, I worked for 6 months in financial advisory (valuation), and have been working as a financial analyst (budgeting and forecasting) for the last couple years.
I am torn as to whether I should stick with the finance route and get an MBA so that I can get into management consulting or banking, or if I should start over and attend law school. My main desire is to accumulate wealth and be financially secure, with minimal comparative risks.
I would appreciate any insight you can contribute, thanks.
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hello Kevin
i m 18 years old and will be starting my BCOM degree in 2010 winter session in canada.I am still unsure about the career i want to pursue and find management consulting a good option. i want to ask that if i want to pursue management consulting what is it that i can do currently that will best prepare me best for this career? and what are some favorable majors in commerce( eg. HR/finance) that you think would be the most in demand in the future and that would ensure a top position in a firm as well ?
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Does anyone know anything about litigation consulting salaries? Analyst, associate, manager range? Will they vary if working in small boutique versus larger firm?
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Hi kevin,
i am planning to pursue my B.S. in business management online. I read alot about business consultant and i think this would be perfect field for me to pracitce and gain more knowledge. So i need your advice on how to get internship and get started with this job.
Your answer matters..
Thank you.
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Hi Kevin!
I’m from one of CIS countries and 25 years old with 3 years of full time working experince in sales, and during my undergrads I’ve also been working part time in sales. To sum up I’ve got 6 years of sales experience in financial and real estate fields. Additionally, during my undergrads I’ve been taking active part in extra-curricular activities. Now I’m getting my MBA from one of UK top 10, and would like to join consulting either in Asia or one of developed countries, like UK.
How do you think what are the chances that my CIS work experience will be valued here? And what is the salary that I can get?
I would be extremely grateful for you reply! Thank u so much in advance!!!
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Hi kevin nd other commenters,
Im actually curretly doing my A-levels and want to study economics at university and I am hoping to get into investment banking or consultancy but I am confused on 2 matters, would it be wise for me to take a gap year and work with a consultancy firm or bank and would it be wise for me to do an MBA before entering work after graduation or while working… would i possible get a MBA grant frm my firm.
sorry if its alot of questions
thank you
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with regards, to the perks that consulting offers, whereas banking supposedly doesn’t: this might not be completely true. especially BB banks offer the same perks, such as life insurance and healthcare (covering also significant others) or even pension funds, contributing 10% of the salary.
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hey thanks for this article and i’m currently doing actuarial studies with finance and dunno which path to set out on. Is consulting a very volatile job like during the financial crisis cause i enjoy both but want to concentrate on one specific field
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