The Truth Behind Business Consulting and Management Consulting Salaries

This is a topic many people are dying to learnEngagement manager/Project leader: $175-250K
more about.Associate principal/Senior project leader:
The data is from my own consulting experience,$250-400K
current consulting friends, and publicly availablePartner/Principal: $500-800K
sources. They should be pretty close to the realSenior partner/Director: $1M plus
numbers.At more senior levels the pay is increasingly
Here they are!performance-based
1st year out of college undergraduate:How consulting salaries lose to finance:
Base salaries: $50-65KAt almost every position as a management
Signing bonuses: $5-10Kconsultant, your salary will be 30-50% lower than
Relocation/moving expenses: $5-10Ka comparable position in investment banking. This
Year-end bonus: $5-10Kvaries by year and median salaries in non-banking
Thats an average of $70-75K in first yeardepartments (such as research, asset
compensation. As a summer intern, you canmanagement, sales & trading) are lower. The
expect a comparable, pro-rated salary (minus thetruth is simple: consulting is not a profession to
bonuses). Please note that this does not includemake big bucks.
retirement contributions.How consulting firms make up the lower salaries:
First year out of business school/MBA:Better benefits - healthcare, life insurance, etc
Base salaries: $110-140KRetirement contributions - this one is important
Signing bonuses: $20-40Kbecause at McKinsey/Bain/BCG, theyll contribute
Relocation/moving expenses: $10-20Kan added 5-10% of your base salary to your
Year-end bonus: $20-40Kretirement funds, effectively a 5-10% year-end
Thats an average of $160-200K in total first yearbonus! (A reader just informed me that his
compensation. Please note that this does notMcKinsey/Bain/BCG retirement contribution
include retirement contributions.starting fulltime in 09 was 4.5%, which is lower
Upward track through partner:than Id seen in previous years) More generous
My numbers have a higher risk of beingreimbursement policies, travel perks, etc
inaccurate as this is only from personal anecdotes,Hope you found that informative. Good luck
so if you have better information, please let mebreaking into consulting.
know.