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:
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I think your post-MBA numbers are low. The b-school placement reports indicate base of $110K-$120K.
Where consultants really lose to bankers is in the bonus in good times at the post-MBA level through junior partner. As the song says, “you can’t buy Cristal with Starwood points.” But once you’re a consulting partner for a couple of years, you actually have a pretty good life relative to a banking MD. You have far more job security, you work far less, you travel less (assuming you can cultivate some clients near home), and you work with fewer assholes in a less stressful environment.
And this year consultants typically made more than bankers. Take a 2nd year associate in a bank making $100K base and $200K bonus, or $75/hr assuming an 80-hour week. Except there was no bonus this year for many in banking, so if they weren’t fired, bankers took home only $100K, or only ~$25/hr. By contrast a 2nd year post-MBA consultant might make $130K base and $30K bonus for his 60 hour weeks, or $53/hr. And the consultant will make about that same $160K in good times and bad. Thus consultants do worse than bankers in good times and better in bad times.
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Mergers and Inquisitors referred me to this site.. I already love it
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yeah, the post mba numbers are low. i have a few friends who accepted offers about a month ago and the base ranges from 125K~145K. also signing bonuses range from 20K~40K for this year post mba recruits.
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Thanks Consultant99 and rustyconsultant. I’ll adjust the post based on your inputs!
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@rustyconsultant those numbers feel a little high (particularly the 145/40). i’ve been talking to a few folks across the MBBs. do you have any other information you can share (like what firms)?
Thanks for your comments btw. And if you’d prefer to keep that private, feel free to email me as well.
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@Consultant99
A mid-tier 2nd year banking associate took more than $275k in 2008 unless fired. Your “no bonus” assumption is too harsh.
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I know several people in the top banks in ‘08 who got little to nothing in their bonus and were told to be happy they had a job. And some of the folks fired in late 2008 got zilch in bonus. Some associate-level bankers still got nice bonuses, but many did not, which any real estate broker in NYC or London would tell you. P.S. I would love to see any data people have on banker bonuses this year.
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My questions are about the 3 Bigs:
Why does Bain appear some years among the best companies to work for and the other two not?
Is there any important difference in salaries between Bain, McKinsey and BCG?
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@Holmes 5:
Second question first – I’d say no in the early years. Some boutiques are much more aggressive about promotions/salary increases to retain talent, which will start to make a big difference in your 3rd year and beyond. Plus, there are significant differences in how firm profits are distributed once you’re a partner.
To your first question – a lot of the lists of “best companies to work for” can be arbitrary. Bain has a reputation as being the most “fun” of the Big 3, which is a function both of current firm culture and their hiring process. This would be the only explanation I could come up with, because each of the others has their respective positives for employees (such as BCG’s reputation for encouraging entrepreneurialism, McKinsey’s reputation for providing a strong, formal training platform)
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Thanks Kevin!
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A salary 100% lower than an investment banker’s salary is really going to hurt. If not income, do they at least provide food and shelter?
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Haha good catch. You know what I mean, but better to play it safe. Post updated.
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Kevin, you’ve said “there are significant differences in how firm profits are distributed once you
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Take what I say with a grain of salt – having not been a partner at either firm, I don’t have the direct experience. From what I’ve heard, salary is highly-performance based (how many clients you develop, engagements you initiate, etc). I don’t expect the median to be significantly different across firms, but some have a greater focus on pooled profits by practice and group while others have a greater focus on individual performance.
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I accepted an offer this year with a top Consulting Company (post MBA in June) for $115 base, 20% bonus, and $10K signing. Consulting companies are not offering starting packages this year as high as they did the in the past 3 years. I expect to “catch up” in the next few years as times get better.
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@Wahine – thanks for that data point. I’ll have to pass on the news. Am not surprised that offers (particularly bonuses) are lower this year than years past.
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While on the subject, as someone who has been on both sides of the fence, don’t forget that just because your salary may not be as high as an I-banker, its still great money and among the top of all profession choices. You aren’t going to starve. At the lower levels it may feel like a bigger difference — 150k means a much different lofe than 75k, but once you pass certain income levels it starts to become gravy.
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@tr – point well made. The important thing is to take about 3, 5, 10 year goals and beyond and which industry places you best to achieve those goals.
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Do anyone has a rough number on salary in operation consulting specifically?
Are salaries very different between functional areas (e.g. strategy vs operation) and firms (e.g. M/B/B vs. other smaller, boutique firms)?
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Ho_ty,
I don’t have specific data but its most likely comparable to slightly lower. With respect to salaries by firm, the numbers I’ve seen indicate that salaries are comparable but lower for most boutiques relative to the big guys.
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How could I know about Bain, BCG and McKinsey salaries in Spain? (without being rude :))
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FC, I don’t have that personal information. Reach out to friends in industry – most likely top consulting firms across Spain will pay comparably.
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What about Economics PhD graduates (HYP Ivy) but without industry work experience: do they get analyst positions on-par with undergraduates or associate with MBA’s (who typically have 2yrs of industry experience to get into MBA to begin with)?
Thanks.
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Kevin Reply:
May 7th, 2009 at 12:45 am
In general, you can expect associate-level seniority/pay. You may find upward progression slightly slower than an MBA with prior business experience who joined the firm at the same time, however.
Hope that helps!
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Hi Kevin- I’ve read in a Vault Guide that the BCG salaries are more stagnant than McKinsey ones. Is that true?
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Kevin Reply:
May 11th, 2009 at 12:40 pm
I’m sure what you mean by “stagnant”. If you’re implying that BCG salaries increase less frequently than those at McKinsey, I’d be hard-pressed to give you an accurate answer. Anecdotally, it seems like the Big 3 (MBB) do a good job keeping pace with each other at the more junior compensation levels.
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Hi Kevin- that’s exactly the point about ’stagnant’. Thank you very much for your answer.
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Hey Kevin,
I’ve enjoyed the site immensely. I’m starting an undergrad internship at MBB soon and have found it helpful.
I was wondering:
1) in your experience or knowledge, is it common for an intern at one of the MBB firms to switch to another one of the big three firms for full time? Or are there marginal/little differences in terms of the actual work at these firms?
2) I am interning at what is considered a “flagship city” MBB office. If I do well, for full time I am interested in transferring to another US office within the firm (for lifestyle reasons). Do you know if this is very doable?
3) I’ve heard anecdotally (but not officially/reliably) that the exit opportunities to PE and VC for ACs/BAs at Bain and McK tend to be better than BCG. Is there any truth to this? If so, do you happen to know why?
I realize these questions may be hard to answer. I appreciate your response!
A loyal reader,
Summer1
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Kevin Reply:
June 7th, 2009 at 1:52 pm
Summer1, thanks for your comment!
1) It happens, but not often. There is some difference in culture, somewhat less difference in the actual day-to-day
2) This is doable. I’d encourage you to start speaking with analysts and consultants early about this, and make sure you kick ass at your internship
3) I don’t have any data on this but can see where you’re coming from. It probably has to do with 2 factors – less alumni from BCG in VC/PE, and fewer BCG consultants who are interested in those types of careers
Good luck with all, and stay in touch.
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Does anyone know the entering salary level for someone with 10+ years industry experience going into consulting? Also the position that ppl with experience normally get.
I have both technical and business experiences, and was contacted recently by one of the top 3 companies for career opportunity.
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Kevin Reply:
June 14th, 2009 at 8:11 pm
That’s really a case-specific answer (with respect to the position and salary). Depending on the position, the same ranges will apply as per above. Good luck!
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Hi Folks. I have been following these threads with intense interest. Currently, I am on active duty with the US Navy and will be starting my MBA (accelerated program University of Maryland. Can anyone advise me about going from the service to Management consulting, particularly in terms of what level a firm would likely start me at and what sort of compensation I could expect? Thank you.
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Jahmal – it depends on number of years of service and education level. If its a couple of years with no MBA, you can expect the standard analyst/associate position. If its more than a couple of years and/or an MBA, you can expect the post-MBA position. If it’s more than a couple of years, that presents a more uncertain situation that will differ by firm.
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Good information here.
I was wondering if you could give us some insight into how the hiring, career progression, problems, etc are different for those with non-traditional backgrounds. I am currently a Ph.D. student at a top-ranked school in the Bioengineering/biotech field and am seriously considering management consulting as a career.
Are there instances where having a lot of background information and research experience in a specific area is helpful? Or will someone like myself basically be treated the same as a recent college graduate?
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Kevin Reply:
August 2nd, 2009 at 11:25 pm
Scientist, thanks for your readership. It’s less about domain expertise (unless you have expertise in a particularly relevant consulting field such as healthcare or pharmaceuticals). It’s more about how successful you’ve been in your field – with respect to publications, recognitions, etc. You won’t be treated the same as a recent college graduate – generally PhD applicants enter management consulting at a comparable level to MBA graduates or those with several years of business experience.
Hope that helps!
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Indeed a great discussion, gentlemen.
How about salaries in PE firms comparing to the ones listed? Moreover, how feasible you think the switch from Management consulting (Accenture) into PE for a 4+ yrs consultant is? Would you advise on change in the current economic and employment climate? What salary expectation could one set?
I’ll apreciate your answers. ..and will definitely get back regularly to this great site!
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Found this thread incredibly informative. Wondering if anyone has insight on pre-MBA work experience. Recently graduated with a Bachelor’s in management and I would really prefer some experience before getting my MBA. However have yet to find a solid position (not surprising), which makes me think I should go directly for my MBA. But would I still be able to find a job with a consulting firm assuming I have an MBA from a non-Ivy B-school and no prior work experience? Or would it be more beneficial to settle for a mediocre business position (non-consulting) for two or three years and they do my MBA? Thanks
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Hello,
I was wondering whether anyone can answer this question: I have a good undergraduate degree from the UK (first class honours in computer science), and this year I am studying at a top business school for a masters in management (but not an MBA). I have no work experience, besides internships. What would be my entry level in consultancy?
Thanks.
A.
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I have been reading this post and must admit there’s some pretty good information here. The salary question is always a big one. Nobody really knows what consultants get paid. Although they do try and live like they get paid boatloads.
I’m surprised nobody mentioned the most notable difference between consulting and banking which every MBA should take into account when deciding which career path to pursue.
While consulting salaries are good, the fact remains that consulting is for pussies. I’ve worked in both banking and consulting and can confirm this. Consulting really is for pussies only. There’s a bunch of McKinsey types at my MBA and they’re always trying to find the optimal solution to every problem, even with questions as silly as who gets the next round of drinks. You do!
You can’t have a normal conversation with them that doesn’t eventually lead to both of you trying to estimate the height of something or the length between two points.
Bankers are cocks, they say. Vampires. I actually heard someone refer to bankers as vampires in class. I don’t know about vampires but yeah there are quite a few cocks. But I’d rather be a cock than a pussy, personally.
Still sending my application to Bain and BCG just in case. Even worse than being a pussy is being unemployed.
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Hi Kevin,
I am currently in my 2nd year as an associate with BCG. I had an average CGPA during law school (under grad), how much will that hit me in applying to top business schools? The plus points are that I have my own startup company, tie-up with World Food Program (of the startup) and strong internships( World Bank, Supreme Court judge etc) and publications. Any tips/pointers would be fantastic.
p.s.- Your website is a one stop shop for all consulting information. Maybe you could add something on consulting jokes/anecdotes also.
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How many years would one have to work in order to earn 1M+?
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How hard is it to move up the ranks of MBB?
I am a sophomore at a top school (HYP/stanford/MIT) strongly considering and I am wondering about career tracks.
What are typical GPAs (Mostly 3.9/4.0 or are 3.5-3.7 applicants successful?) and extracurriculars for MBB undergrad hires?
Thanks for
What percent of these hires make their way up the firm?
What percent of hires (of the ones that want to stay in consulting) make it through to a top B-school, Engagement Manager/Principal/Director?
Thanks!
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Concerning the pension contributions, can you get them paid out in cash once you leave the firm or do you have to wait until you retire to actually get the money?
Thx,
Bert
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Does anyone have some numbers on analysts with 2 years experience? i.e. senior analyst level
I’m interviewing with several boutique consulting firms and am wondering what I should be shooting for.
I’m thinking somewhere around 80K base, and 20% bonus?
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2 years exp should be 70-90K with 10-20% bonus. The bonus will be hard to follow through however in this economy.
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Hi,
1. Does anyone have figures for Booz at the post MBA levels? (wondering why there has been no mention of booz till now??) Is it significantly different from MBB?
2. Also, are the growth prospects better at Booz than MBB? (in the Asia region)
anon
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Is it possible to switch from Systems Integration Consulting (Accenture) to Management Consulting (Accenture)? I got an offer from Accenture for SI&T but would like to switch to Management Consulting as soon as possible.
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ACN Analyst Reply:
January 6th, 2010 at 12:39 pm
Hey.
It’s possible but very difficult. You’ll have to do at least some time in SI&T first. You need major support from your Career Councilor to pull it off. If your CC is not completely behind you find a different one ASAP. If possible ask for a CC in MCIM. Also try to do your best to get as many MCIM roles as possible. This will make you case stronger.
Unfortunately there are a lot of people in SI&T that try to move to MCIM. I started the grad program in Feb09. Out of the 15 or so grads that started with me about 5 tried to move from SI&T to MCIM. So far none have been able to. But I don’t think any of them have been proactive enough. I think if you talk to the right people and go on the right projects you can pull it off.
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Anonymous Reply:
April 27th, 2010 at 9:05 pm
I am curious about this too. Does this mainly involve meeting as many management consultants at ACN and selling yourself to them, asking to be rolled onto their projects, etc. How else can you get MCIM roles? Would it be okay to let your CC know right away? I have a lot of questions (sorry), but I would really appreciate your input. Thank You!
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Hi there, just wanted to add a datapoint. What is in the post now seems pretty accurate, according to my personal info. I just accepted an offer to start with an M/B/B firm in the fall, as an APD (I have a social science PhD). I will be entering at the Associate level – before I started applying, I actually asked a consultant friend what would happen if I didn’t look “good enough” to be considered for the associate level (that is, on the same level as MBAs) and he said they would not bother considering me for an analyst position.
Anyway, my offer was for the following: 120k salary, 20k sign-on bonus, 12% retirement (that’s what they said has been the average in recent years) and around a 25k end of year bonus (but dependent on performance). Coming from an academic background, I was pretty happy with it!
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AB Reply:
January 24th, 2010 at 10:34 pm
Hi anon – I’m in a social science PhD program and although I’m still 1-2 years away from being on the job market, I’m thinking about options outside of the university. just wondering if by ’social science’ you meant econ, and whether you went straight in to the M/B/B from the PhD or had a teaching/post-doc position beforehand. also, what would you say were your biggest academic assets from the M/B/B perspective (e.g. publications, specific expertise developed in your dissertation, etc.)? thanks!
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Hello,
I recently graduated from a top 3 PhD program in biological science (Ivy), and am currently contemplating either the MBA or consulting route. Although I have an Ivy league degree, my undergraduate degree was from a state school, where my GPA was a 3.7. A concern I have is that some of my peers may have more stellar pre-PhD pedigrees (3.5+ GPAs from HPY-MIT-Stanford), so I wonder how much my pre-PhD education may affect job prospects at the Big 3 consulting firms (M/B/B).
Per standardized achievements and admissions, I scored a 730 (49Q 41V), which is a decent but not exceptional score. How are standardized test scores used? (i.e. 700+ is sufficient or does having 770 versus 700 dramatically increase chances for an offer?) In addition, how helpful is it to have other achievements (i.e. Publications in top journals, patents, chapters in books, work experience, etc.) in the hiring process?
Any response would be appreciated. Thanks.
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I worked in IT for almost 6 years, then did my MBA.
I have a post-MBA experience of 19 months, in IT + Business Consulting.
What should be my salary in Systems Integration Consulting in the UK IT Consulting market, in 2010 ?
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Hello guys,
I’m in search of specific salary information for my personnal purposes: What’s the salary you can get in Accenture:
1a) in USA as a Consultant (5yrs exp.)
1b) in USA as a starting Manager (6yrs exp.)
2a) in Canada as a Consultant (5yrs exp.)
2b) in Canada as a starting Manager (6yrs exp.)
Thank you very much indeed, guys.
All the best,
KK
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What are the chances of becoming partner/principal? Is it a slim chance that the very lucky few get or does everyone who shows good performance have a shot at it? Thanks for your help.
- Omar
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I am a 3rd year PHD student in Management (with a focus on strategic management) at a medium sized mid-western University (a good school, but not on par with the Harvards of the world). As a bonus, I have five years of experience in software development prior to this.
I look forward to a career as a professor, but I am curious as to what options I have in industry. Can I get hired as a management consultant at a major firm? If so, what type of salary would I expect? Starting management faculty average about $105k for a nine month contract as a comparison. Finally, how would I begin my application process? My PHD program is not a big name school, so I am not sure if the Deloitte and Touches of the world even recruit here.
I would appreciate any advice.
PS, would any of the companies care that I have one academic pub in a major journal to my name thus far?
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You stated that “consulting is not a profession to make big bucks”. What about the partners who pull in 500K to 1M+? Wouldn’t you consider that to be big bucks?
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RJ Reply:
February 7th, 2010 at 9:05 pm
Hi Kevin,
Thanks for this info. However, these numbers really only apply to MBB. Is it possible to provide the numbers for other firms such as accenture, delloite, IBM,etc
The issue is that many people will jump on these numbers and say that consulting’s great moolah — but that’s only true if you make it into MBB (and very very few aspirants will!). What happens to ‘the rest’ ??
rgds,
RJ
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Hi, does anyone have pay info on MBA-interns at the associate level for 2010? Even better would be data specific to geography, US and Asia.
For a 1st year mba at a top 5 program in the US, i would like to know about the pay difference at M/B/B, say, between a major US city (New York, LA, Chicago) and Asia (Hong Kong, Shanghai).
I’ve heard a 20-30% discount in Asia vs. the US, but I haven’t seen real data to back it up…
This would be helpful as one of the factors to decide whether to explore a career in Asia.
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