5/19/14

I looked at managementconsulted.com's salaries and they were $160k+ right out of b-school. That seems pretty high first year out; I assume those salaries are from high cost of living areas only. I also checked Glassdoor, but they seem inaccurate.

Can anyone confirm any post-MBA salaries 1st year out, 2nd year, 5th? I'm also curious about the locations.

Comments (29)

5/19/14

For salaries that would be high, but for all-in comp, it makes sense. Many firms don't vary much or even at all based on location. Perhaps some do.

Why do you think they seem innacurate? $115-130k base 1st year post MBA for the firms you mention seems accurate based on all sources, articles, and employment reports I've ever seen. With signing and performance, they will usually be easily north of $160k for first year.

I too am interested in average base increases for Y2, Y3, etc although I realize it is far less predictable based on performance, promotion, etc. (OP, I think predicting at Y4+ is probably just too much of a crapshoot based on promotions and whether the person is even still at the firm since most aren't.) What I'm having trouble finding data on is whether the usual increase in base and performance bonus will more than make up for the lack of signing bonus during Y2 post MBA. I'm assuming it will, but from glassdoor and other references it seems to be pretty neck and neck. Would love to hear from those that know better than I.

Learn More

2,037 questions across 209 consulting firms. 11 Cases developed by a McKinsey Associate, 10+ hours of video. The WSO Consulting Interview Prep Course has everything you’ll ever need to ace your consulting case interviews. Learn more.

5/19/14

First, Glassdoor is pretty shoddy. People post garbage there all the time and there is no filtering.

Second, Managementconsulted is almost spot-on. They even updated this year's post after they published when comments flooded in from new hires correcting a few of their numbers (albeit only by ~$5k). The one downside is they inconsistently calculate "Total Compensation." Ignore that and go by the component breakdown. Generally $120-140k base + $15-35k signing + relo, year-end, etc...

Things they don't tell you: Accenture and Deloitte S&O (some others too) generally reimburse 2Y tuition for returning interns, but at different rates. Something like $80k gross for Acc and $50k gross for D. Some firms offer a small additional bonus (think $5-10k) for interns who sign before a certain date.

Cost of living doesn't generally matter. Almost all firms offer the same package regardless of where you live. I think the rationale is that the job isn't really geo-specific. If you want to pay more to live in NYC or SF, that's your call. If you don't like it, aim for the ATL or Minneapolis office. Relo is subject to the actual distance you are moving.

Projecting salaries a few years after is tougher, so take this paragraph with a grain of salt. WSO's comp database has some good numbers, but not a huge sample. For MBB, the numbers I've heard cited most often are $185k base for an EM1/PL1/CTL (2 years out) and $300-350k base for a Principal (4-5 years out). Bonuses are still largely based on firm profits with max potential 20-30%. Maybe more.

5/19/14

I think your base for an MBB manager is high, and bonus low.

Think more like $170k with "up to" 45% bonus, and "average" bonus of around 30%

5/22/14

Not sure about salary progression, but I can confirm that the info on managementconsulted.com as I received offers from several of these firms this year.

Most all of the consulting firms pay $135,000 salary your first year out of B-school. I can confirm this for MBB, Deloitte, Accenture, Booz, LEK.

Accenture pays a $35K bonus, Deloitte $30K, Booz and MBB $25K. Accenture, Deloitte, LEK will also pay for your 2nd year of B-school if you intern with them.

5/26/14

pr0ficient:

Most all of the consulting firms pay $135,000 salary your first year out of B-school. I can confirm this for MBB

Managementconsulted correctly shows that BCG jumped up to $140k this year. I'd expect the others to follow shortly.

5/22/14

I hadn't heard that LEK pays for your 2nd year as well. How much will they pay? I know Accenture is $80k and Deloitte is $50k (both pre-tax)

5/22/14

How are the traveling perks relative to MBB? From my understanding, MBB are very generous with travel budgets. Do Acc and Deloitte differ much?

5/22/14

a friend at Accenture gets per diem rather than expense account.

long story short, the benefits won't be as generous. less upgraded flights, not as nice hotels, etc.

Learn More

2,037 questions across 209 consulting firms. 11 Cases developed by a McKinsey Associate, 10+ hours of video. The WSO Consulting Interview Prep Course has everything you’ll ever need to ace your consulting case interviews. Learn more.

5/23/14

@BigPicture expenses are project dependent. Hotels are the same.. flights are economy.
I am interested what's a typical manager promotion raise?

5/26/14

@moshennik

Are you asking what MBB manager pay is?

It varies a bit, but i know at my firm $170k base + up to 45% performance bonus (mode is around 30%), plus 401(k) which is pretty good.

5/26/14

@"BigPicture"

Isn't Accenture policy that per diem is given even if you don't use it?

5/27/14

brooj14:

@BigPicture

Isn't Accenture policy that per diem is given even if you don't use it?

....yeah that's how per diem works. You get paid a set amount ($40 or $50) per day regardless of whether you spend it or not.

Pros:
* if you're cheap, you can actually make money
* your financial incentives are not to eat more and get fat
* there are some potential tax benefits.

That said, most of the "premium" firms use an expense policy. For reference, I woke up to steak and eggs at the ritz for like a month straight (it's sometimes easier to wake up when room service knocks than an alarm), and every morning the cost was more than the daily allotment that you'll likely get for per diem.

Pros:
* your life is easier (nicer hotels, black cars vs. taxis)....and more delicious. This is the main upside.
* you get more hotel/amex points and frequent flier miles (Y-class fares give +50% miles; some first class fares up to +250% miles). Calculating the value of points is tricky (is it the face-value of the free flight, or what you would have paid for the free flight?) but I figure at least $10k+ per year in free hotels/flights/etc. I think a less premium firm would be less. More flexibility to stay where you want too, because cost is less of an issue

I don't know which is better. Working to midnght or 2am or whatever can be stressful. It's nice to not give a s**t about expenses and your budget and just order at the hotel restaurant and focus on work. That said, I've definitely seen colleagues stressed from working a lot and having essentially a blank check for food contribute to weight gain.

I'll cast my vote for generous expense policy, because it makes life easier, and really even if I travel 3 days /week * 45 weeks /year * $20 / day saved = $2,700 of banked per diem per year. Doesn't seem worth it, but who knows whatever.

5/27/14

Got it, I asked about Accenture's policy because I heard that at least one of the other non-MBB firms, might have been Deloitte, requires you to expense even on per diem such that even if per diem is $50 a day and you only spend $20, then you would only get $20 for that day. If you are big into eating healthy and only order salads or cook in your hotel room depending on if the suite has a kitchenette, you could definitely bank more than $2,700 possibly double that if you are on the road 4 days/ week, but it definitely is a lifestyle choice.

5/27/14

brooj14:
If you..cook in your hotel room depending on if the suite has a kitchenette, you could definitely bank more than $2,700 possibly double that if you are on the road 4 days/ week, but it definitely is a lifestyle choice.

Mind blown.

I barely have time to sleep, let alone grocery shop and cook during the week. Maybe less-premium firms give more time?

5/27/14

Haha obviously not a five course meal or anything but picking up a few fridge directly to oven meals from the store could save a lot of money and how much time do you waste? 10 minutes tops (taking the food out of the box, putting it in the oven, taking it out of the oven). It definitely is a lifestyle things, I likely will never do it during my time in MBB, but if one wanted to save money, they definitely could find the means of banking a good portion of per diem.

Best Response
5/27/14

I think there are a lot of misconceptions about expense policies on here, so I will weigh in. At my firm (T2), whether or not you are on actuals (i.e., expensing what you actually spent) vs. per diem is entirely project dependent. It depends on the contract that your firm signs with the client, not your firm. When I work super late, I'm totally able to order room service and continue working.

There is no difference between quality of hotels, etc. You book the cheapest that is available or whatever is mandated by your project, which sometimes is $100 depending on location and sometimes is $400 a night. This is all part of the contracting process, i.e. expenses are a set % of the contract fees.

In terms of flights, if you're flying, you will earn status = you will be upgraded. Working for MBB does not mean you will have "better" flights than Tier 2, whatever better even means. You take the flight that works. Major firms like these do not care if the flight is $1100 vs. $1200, you take the one that is roughly in the range and the EM budgets and manages the project accordingly.

Let's try not to have a bunch of college kids circle-jerk around the "OMFG expense all the things" policies of consulting. You work hard, are on the road and are compensated accordingly (and fairly I think, for a 25 year old).

6/12/14

Accenture ~$160k all in right out of bschool. 5 years down, it's much less than what you make at MBB.

6/13/14

futurebanker360:

Accenture ~$160k all in right out of bschool. 5 years down, it's much less than what you make at MBB.

This sounds like base + signing only. Even then a bit low. Don't forget year-end bonus + 2Y tuition reimburse (~$80k gross). Managementconsulted numbers posted by @"OpsDude" look right. Keep in mind that the bonus truly is a max. 50-75% of that number is probably more typical.

6/12/14

@futurebanker360 thats much less than managementconsulted.com had accenture pegged at. Source?
http://managementconsulted.com/consulting-salaries...

Signing Bonus: $35,000 (Canada: $15,000)
Base: $135,000 (Canada: $140,000)
Relocation: $8,000
Performance Bonus: up to $43,500 ($30K of which is MBA bonus and is only available in for your 1st year)

- - - - -
Total Compensation: up to $221,500
Retirement: 6% Employee Match
Tuition reimbursement: up to $80,000 ($50,000 after taxes)
Vacation: 5 Weeks

6/12/14

My source is several personal acquaintances from booth/kellogg who accepted offers in 2012/2013. I guess my data isn't up to date. From what i know: on average (coming out of top bschool), base: ~$125k + ~$30k signing bonus + ~25k end year. So apologies, I did indeed underestimate a bit. I guess the point I was trying to make was that I would take MBB over Acn/Deloitte/PwC even if MBB paid $120k starting compared to $180k at Acn/Deloitte/PwC. Knowing what I know, you would thank yourself for that decision ten years down the road.

10/24/14

I'd be interested in knowing the Accenture salary progression if anyone knows. Trying to figure how much, if at all, they are worth targetting during bschool recruiting. I've seen $350k total comp at management director throw around, which seems low.

10/24/14

Management consulted is pretty accurate from the offers i had

10/24/14

I'd be interested to see the Yr2 and beyond salary progression from those in MBB & T2

1/8/15

Hi, I'm astonished by these MBA salari s. I'm not from the U.S., so please excuse my ignorance. Are these MBA salaries offered to grads with zero experience or are they for grads who have some professional experience under their belts?

1/8/15

In the US, you usually have at least 4-8 years experience before joining an MBA program.

"So who lost the hundy?"

1/8/15

If you're coming from a consulting firm, make that more like 2-3 on average. 4-8 is more or less the emerging trend for those outside of consulting.

10/22/15

Trying to figure out what total 4yr pay would look like at MBB right after an MBA. I'm trying to help someone compare it to a startup offer with a much lower salary (still 3 figs) but much bigger upside on equity, I'm trying to figure out how much that equity would have to be worth for it to equal MBB pay.

I realize a lot of the benefit of MBB is the learning, the networking, and the exit opps, but if we were to only consider the pay for a moment, what would that look like?

I'm thinking for MBB (including retirement contributions and bonus), $180k 1st yr, $230k 2nd yr, maybe $280k 3rd yr and $330k 4th yr ($50k/yr increase overall, remember this is counting retirement as well), what do you guys think?

10/22/15

1-Click to Unlock All Comments - 100% FREE

or
Why do I need to be signed in?
WSO is a knowledge-sharing community that depends on everyone being able to pitch in when they know something.
+ Bonus: 6 Free Financial Modeling Lessons with 1-Click Signup ($199 value)
10/23/15