Huey Freeman wrote:
Anyone know about structure of management consulting salaries? it's kind of interesting to hear about the "best way to make it rain" debate.
I worked in consulting bfore law school, still have a lot of friends in it, and I went through the entire application/interview/offer process at several firms so I have some insight.
At the Analyst (after undergrad) level:
Tippy top firms like Mckinsey and BCG (which typically
only recruit from a selection of Ivy league schools, top b-school programs like Northwestern, Stanford, and MIT, and prestigious liberal arts colleges like Amherst and Pomona, with a 3.9+ GPA and 2200+ SAT requirement, yes, you have to bold your SAT scores on your resume) pay out comparable to banking for base salary ~$70K
, but have lower bonuses in the $10-15K range. Could be single digit bonus if you didn't have many projects or your work was mediocre. There isn't much of a bargaining process on salary here since they control the market and take very few people. Needless to say with my grades, I did not get any jobs at these very top firms.
Going down the vault list to Deloitte and similar nationwide firms, salary points go down to the $60-65K range + $5-8K bonus, commensurate with "experience" (if you did your summer there, or you had leverage in negotiation with competing offers). This would describe the firm I worked for.
In all of the above, salaries for Analysts are "re-evaluated" each year, usually in the summer (mine was July). I've never heard of them going down, but they can stay the same. If you aren't performing though, usually you are fired rather than stalled. Most analysts do 2 or 3 years in the firm before moving on to law school, business school, going into industry, or something else, so the salaries don't increase by all that much by the time people leave, but they will go up a little.
Then you have small and mid-sized firms which will basically pay whatever they can afford since they don't have a set number of competitors. There was a boutique executive pay consulting firm in Beverly Hills that I didn't make it past the 2nd interview for that paid at Mckinsey level (~$70K+bonus), and then there are firms that go as low as $40K in lower CoL areas like Minneapolis or St Louis.
At the associate or manager level when you return with an MBA, my understanding is that the standard level falls around ~$120K + bonus. This is probably higher at the larger firms