Business students love consulting! Forget the same stale routine. In consulting, everything is new: New teammates, new clients, new locations. You’re always creating and learning, always becoming more well-rounded and valuable. Each day, consultants enjoy the privilege of working alongside the best minds on defining issues and cutting edge methods. Best of all, consulting firms pay a premium for talent.
How much can you expect to earn in consulting? A lot says ManagementConsulted, a firm that caters to future consultants through services ranging from resume reviews to case method sessions. In consulting, undergraduates can expect to make $80,000 in base pay during their first year in consulting. And that doesn’t count the $5,000 signing bonus – let alone the performance bonus, which can go as high as $12,000.
A “RECESSION-PROOF” INDUSTRY
Impressed? Brace yourself: MBAs rake in nearly double that. Here, the average starting pay is $150,000. The average signing bonus –$25,000 – is five times what an undergrads grosses. Oh, and the performance bonuses for MBAs can go as high as $44,000 in their first year too.
Sound too good to be true? The consulting business is booming. Namaan Mian, the operations manager for ManagementConsulted (MC), tells Poets&Quants that consulting firms enjoyed a 10% revenue spike in 2017. Thanks to its business model, which is absent cost centers like production, marketing, and distribution, consulting firms can funnel more dollars into its biggest asset: talent. As a result, business majors and MBAs reap the benefits with nary a bubble in sight.
Deloitte visits a Kenan-Flagler MAC class. Courtesy photo
“Even during the Great Recession,” Mian notes, “management consulting proved itself as almost “recession-proof.” When times are bad, companies are looking for every potential avenue to drive growth and cut costs. When times are good, companies have additional spending capacity, which they use to bring in consulting firms to continue to drive growth or work on projects further downstream. So, I only see consulting salaries continuing to grow in the coming years.”
STRATEGY& PAYS UP TO $100K FOR BACHELOR’S DEGREE HOLDERS
The numbers bear out Mian’s assessment. He points to base salaries for starting offers, which have risen 5% year-over-year. However, he adds that some sectors have performed better than other. The difference between strategy and tech consulting is a case in point. According to Mian, strategy consulting salaries are rising twice as fast at a 15%-20% clip compared to 5%-10% for tech consulting. That means the gap only grows as a graduate’s career progresses. “This can really affect lifetime earnings for someone considering both paths, as tech consulting salaries start out about approximately 15-20% lower than strategy consulting salaries,” he says.
Market segment may be one factor, but the actual firm can play an even bigger role. Which consulting firms are paying the most for talent? That depends on how students view compensation – and whether they hold an undergraduate degree or an MBA.
Base pay is perhaps the best indicator, as it is the most consistent form of earnings. In the undergraduate population, Strategy& ranks among the big winners. Formerly Booz & Company, Strategy& pays undergrads $90,000 in American dollars in their first year based on MC figures. That’s only part of the calculus for new graduates. Consulting firms traditionally tack on signing bonuses, which are generally uniform for the same position. Here, Strategy& also splurges with a $10,000 average signing bonus – tying it with Parthenon for second place (though A.T. Kearney, McKinsey, and PwC are known to go as high as $10,000).
That’s not to say there was a steep drop off after Strategy&. Deloitte starts out bachelor’s degree holders out at $88,000. When you couple that with its $12,500 signing bonus, Deloitte pays slightly more than Strategy& — at least to start. Among the big three consulting firms – McKinsey, Bain & Company, and the Boston Consulting Group (BCG) – base pay hovers at $83K-$84K, with each doling out $5,000 in signing bonuses. Business students can also take heart at the opposite end of the scale. The lowest pay came at Mercer, where the base was still a respectable $65,000 (which excludes the $3,000 signing bonus).
Go to next page to first-year pay for MBAs at leading consulting firms (and how it compares to base pay for undergrads).
A.T. Kearney consultant meeting in the New York office
FOR MBAs, PARTHENON PAY BREAKS $200K BARRIER IN YEAR ONE
This standard doesn’t quite follow suit among MBAs, however. Among these students Parthenon bests Strategy& in starting pay by a $170K-to-$147K margin (along with paying $10K more in sign on bonus too). In fact, Parthenon topped all firms in combined base and sign on bonus, offering $205,000 in guaranteed first year pay alone to MBAs. Bain & Company also ranked among the most generous consulting firms to start according to MC figures. The firm offers a $148,000 average base and a $37,000 signing bonus. These numbers outpaced both McKinsey ($152,500 base and $25,000 bonus) and BCG ($147,000 base and $30,000 bonus).
As graduates gain experience, their paychecks soar. MC has found that consultants can expect 10%-20% increases in base pay and performance bonuses annually. At the same time, MC is careful to note that just the top 5%-10% of employees earn the maximum bonus; the majority takes away half of that amount. While firms generally furnish standard offers, MC concedes that its salary data shows that they accommodate higher living costs in pricier markets like San Francisco and New York City.
Eventually, such adjustments are negligible over time – at least for MBAs. MC figures show average base salaries climb to $190K-$210K after two to three years of experience, when MBAs rise to the manager and project leader level. This pay is supplemented by performance bonuses ranging from $80K-$120K. Once MBA graduates move into associate principal or senior project leader roles after 4-5 years, the base and bonus jump to $230K-$300K and $110K-$200K levels respectively. At the junior partner and principal levels, which occurs after 6-8 years of experience, performance bonuses become increasingly lucrative, ranging from $300K-$500K – not counting the $320K-$400K base. After a decade or more at a leading consulting firm – when MBAs reach senior partner or director level – base pay can start at $400K and reach as high as $600K. By the same token, MC notes that senior partners “usually make” a million in performance bonus, with top performers going as high as $5 million.
MORE TO PACKAGE THAN BASE AND BONUS
That’s the long view. In the short-term, consulting offers are often take-it-or-leave-it propositions with few exceptions says Mian. “Firms don’t budge much on their compensation packages. They may make an exception if you are a top recruit in your region, and have pending offers from other firms as well.”
However, many administer perks that are hard to beat. At Deloitte, MBA interns who return to the firm after graduation receive full tuition reimbursement for their second year – and Accenture will shoulder those same costs up to $80,000. Accenture will also cover relocation fees for undergrads at a $5,000 clip, with McKinsey going as high as $9,000 for MBAs. Accenture, A.T. Kearney, and Ernst & Young will do a 6% match on 401Ks for the undergrad employees after a year of service. In addition, Accenture makes discounted stock available to consultants, while Huron extends travel bonuses up to $3,750.
How effective have such tools been? “Very effective,” says Mian. What’s more, he says, some of the most attractive and generous perks may not even carry a dollar value. “These are traditional benefits (401K matching, comprehensive health, etc.) and nontraditional – first class travel, the draw of working with extremely bright colleagues, and fantastic professional development programs.”
CONSULTANTS OFFER EXPERTISE AND “POLITICAL COVER”
Consulting may be a popular destination for savvy business majors and undergrads, but it has also emerged as an increasingly popular option for employers in an improving economy. For clients, consulting is a means to pursue growth, without having to absorb costly, long-term investments in staff and expertise.
“Clients have additional spending capacity,” observes Mian. “For many companies, it’s not hard to see the ROI from bringing a firm in for a 4-6 month engagement. In addition, as companies grow leaner, many of them have short and medium-term staffing needs due to a variety of factors such as recent downsizings or sudden expansion). Plus, consultants bring analytical horsepower. Many internal employees just may not have the skills or knowledge sufficient for a particular project or initiative. Or may not be able to definitively say (backed with data) that a certain strategy is the best option.”
Consultants bring another benefit to the table as well. “They are an external change force or ‘political cover’” Mian adds. “Hiring consultants can be a way of reaching desired conclusions without shouldering the blame for consequences.”
Go to next page to see pay growth at various consulting firms since 2015.
Accenture Strategy careers presentation at London Business School
HIGHER PAY COUPLED WITH GREATER RESPONSIBILITIES
They are paid well to do exactly that. Over the past three years, starting pay has skyrocketed for undergrads and MBAs alike. At Deloitte, for example, base pay has jumped from $72,500 to $88,000 for undergrads – a 21% increase. The numbers have swelled by 18% and 11% at McKinsey at Bain alike. At the same time, PwC and Strategy& have doubled their signing bonuses.
Among MBAs, the numbers are a bit more steady, though McKinsey and Bain have both boosted their pay by over 9%, while KPMG has more than doubled their signing bonuses to $35,000, a number that stands out when rival firms hold the line at $25,000.
They are more than earning it. In consulting, the days of starting the process with a fancy model and colorful PowerPoint have long past. Instead, consultants are expected to provide end-to-end support that makes firms more accountable than ever for results. As a result, Mian adds, consultants are increasingly adding “trainer” to their long list of roles. “Every consulting project –particularly ones with heavy client interaction – incorporates client training as a major ingredient. The best recommendations are worthless if clients can’t implement and maintain suggested changes. Thus, a large part of what consultants do is educate client employees on necessary knowledge, skills, and mindsets.”
MC’s numbers are derived from interviews from hundreds of clients after they land positions with consulting firms. The numbers are further refined by MC’s network within leading firms, who have helped them better understand the nuances of their employers’ pay and bonus structure.
DON’T MISS: THE BEST CONSULTING FIRMS TO WORK FOR IN 2018 OR CLASS OF ’17: MEET BAIN & CO’S NEWEST MBA HIRES
To see Intern pay for undergraduates and MBAs, go to the next page.
To see detailed pay data by firm for MBAs, go to page 5.
To see detailed pay data by firm for undergraduates, go to page 6.
Deloitte University Media Wall
MBA/PhD Program Internships
- AT Kearney: $12,000 / month
- Bain: $29,000 (10 weeks)
- BCG: $30,000
- Deloitte: $29,750 + full 2nd year MBA tuition for returning interns
- EY: $23,000 ($10,000 / month for 10 weeks)
- IBM: $25,000 + $4,500 relocation (10 weeks)
- IMS: $11,500 /month + $5,000 signing bonus
- L.E.K.: $3125/week (9 weeks) + up to $25,000 tuition reimbursement for returning MBA interns
- KPMG: $66/hour ($99/hour for overtime, 10 weeks)
- McKinsey: $31,000 (10 weeks)
- Parthenon-EY: $27,000 + $5,000 signing bonus (for 10 weeks)
- PwC: $12,000 / month
- Strategy&: $12,000 / month
- ZS Associates: $11,500 / month + $5,000 signing bonus
Undergraduate/Masters Program Internships
- Accenture Strategy: $31.50/ hr, plus signing bonus and overtime
- A.T. Kearney: $12,000
- Bain: $14,750 (10 weeks)
- BCG: $14,500 (10 weeks)
- Deloitte: $32 / hour ($48 / hour for overtime, ~ 50 hours a week)
- EY: $30 / hour ($45 / hour for overtime)
- IMS Consulting Group: $11,500 + bonus
- KPMG: $28 / hour
- L.E.K.: $12,500
- McKinsey: $14,500 (10 weeks)
- Oliver Wyman: $11,750 + $2500 signing bonus (9 weeks)
- PwC: $39 / hour (8 weeks plus 1 week trip to Disney World if accepted return offer)
- Strategy&: $38 / hour
- ZS Associates: $12,000
Bain consultants meeting in a lobby
Salaries for Incoming MBA/PhD Graduates
Accenture Strategy
- Base: $147,500 (Canada: C$140,000)
- Performance Bonus: up to $44,400
- Total Cash (sum of above): up to $191,900
- Retirement: 6% match for 401k
- Tuition Reimbursement: up to $80,000 ($50,000 after taxes)
- Signing Bonus: $25,000 (Canada: C$15,000)
- Relocation: up to $8,000
A.T. Kearney
- Base: $147,000 (Germany: €85,000)
- Performance Bonus: up to $44,100 (Germany: up to €16,000)
- Total Cash (sum of above): $191,100
- Retirement: 401k contribution up to $8,000
- Signing Bonus: $25,000 (plus $10,000 for summer interns)
- Relocation: up to $10,000 (Germany: up to €5,000)
Bain & Company
- Base: $148,000 (Canada: C$120,000) (UK: £85,000)
- Performance Bonus: up to $37,000
- Total Cash (sum of above): up to $185,000
- Retirement: 401k contribution up to $8,000
- Signing Bonus: $25,000
- Relocation: up to $5,000
Boston Consulting Group
- Base: $147,000 (Dubai: $130,000) (UK: £87,500)
- Performance Bonus: up to $44,100
- Total Cash (sum of above): up to $191,100
- Retirement: No 401k match but profit sharing is deposited into 401k account
- Signing Bonus: $30,000 (Dubai: $30,000)
- Relocation: $2-8,000
Booz Allen Hamilton
- Base: $120-145,000 (depending on work experience; Dubai)
- Performance Bonus: up to $36,250 (25% of base; Dubai)
- Total Cash (sum of above): up to $181,250 (Dubai)
- Housing Allowance: $32,000 ($50,000 if married/family; Dubai)
- Relocation: up to $25,000 (Dubai)
Cognizant Business Consulting
- Base: $125,000
- Performance Bonus: up to $15,000
- Total Cash (sum of above): up to $140,000
- Signing Bonus: $20,000 (Dubai: $30,000)
- Relocation: up to $6,000
Deloitte
- Base: $145,000 (Canada MBA: C$125,000)
- Performance Bonus: up to $31,900
- Total Cash (sum of above): $176,900
- Retirement: 25% match of first 6% into 401k (a total of 1.5%)
- Tuition Reimbursement: Full 2nd year tuition for returning interns
- Signing Bonus: $25,000 (additional $17,500 for returning interns, $20K early signing) (Canada: C$20,000)
- Relocation: $2,500 if local; up to $10,000 otherwise
Ernst & Young
- Base: $145,000
- Performance Bonus: up to $31,700
- Total Cash (sum of above): up to $176,700
- Signing Bonus: $25,000
- Relocation: up to $5,000
IBM Global Business Services
- Base: $147,500
- Performance Bonus: up to $14,750
- Total Cash (sum of above): up to $162,250
- Signing Bonus: $25,000 (additional $15,000 for returning interns)
- Relocation: up to $6,500
IMS Consulting Group
- Base: $130,000
- Performance Bonus: up to $16,250
- Total Cash (sum of above): up to $146,250
- Signing Bonus: $25,000
- Relocation: up to $8,000
Infosys
- Base: $122,500
- Performance Bonus: up to $25,000
- Total Cash (sum of above): $147,500
- Signing Bonus: $20,000
- Relocation: up to $3,000
Kalypso
- Base: $124,000
- Performance Bonus: up to $15,000
- Total Cash (sum of above): $139,000
- Signing Bonus: $15,000
- Relocation: up to $3,000
KPMG
- Base: $145,000
- Performance Bonus: up to $25,000
- Total Cash (sum of above): $170,000
- Signing Bonus: up to $35,000
- Relocation: up to $5,000
L.E.K.
- Base: $150,000
- Performance Bonus: up to $25,000
- Total Cash (sum of above): $175,000
- Retirement & Profit Sharing: up to $30,000
- Signing Bonus: $25,000 (additional $25,000 for returning interns)
- Relocation: up to $5,000
McKinsey & Company
- Base: $152,500 (UK: £90,000)
- Performance Bonus: up to $35,000
- Total Cash (sum of above): up to $187,500
- Retirement: up to $11,900 (7% of qualified compensation, capped at $170,000)
- Signing Bonus: $25,000
- Relocation: $2,000-9,000
Mercer
- Base: $110,000
- Performance Bonus: up to $22,000 (20% of base)
- Total Cash (sum of above): up to $132,000
- Signing Bonus: $20,000
- Relocation: up to $3,000
Parthenon-EY
- Base: $170,000
- Performance Bonus: up to $9,000
- Total Cash (sum of above): up to $179,000
- Signing Bonus: $35,000
- Relocation: up to $2,000
PwC
- Base: $135,000-140,000
- Performance Bonus: up to $27,000
- Total Cash (sum of above): up to $167,000
- Starting Bonus: $25,000
- Relocation: up to $2,000
Strategy&
- Base: $147,000
- Performance Bonus: up to $47,040
- Total Cash (sum of above): up to $194,040
- Retirement: 6% of base + bonus into 401k, no contribution required (5 year vesting period)
- Signing Bonus: $25,000
- Relocation: up to $3,000
- Student Loan Repayment: $1,200/year for up to six years or until you become a manager
BCG’s new New York office at 10 Hudson Yards – overlooking the Hudson River. Photo by Anthony Collins.
Salaries for Incoming Undergraduate/Masters Graduates
Accenture Strategy
- Base: $77,500-85,000 (Canada: C$75,000)
- Performance Bonus: up to $8,500 (10% of base)
- Total Cash (sum of above): up to $93,500
- Retirement: 6% match for 401k after 1st year
- Stock: 15% discount of Accenture stock
- Signing Bonus: $10,000 (Canada: C$10,000)
- Relocation: up to $5,000
Alvarez & Marsal
- Base: $75,000
- Performance Bonus: up to $19,000
- Total Cash (sum of above): up to $94,000
- Signing Bonus: $5,000
A.T. Kerney
- Base: $75,000 (Canada: C$70,000)
- Performance Bonus: up to $15,000 (20% of base in US and Canada)
- Total Cash (sum of above): up to $90,000
- Retirement: 6% match for 401k
- Profit Sharing: up to $7,200 (10% of base depending on firm performance)
- Signing Bonus: $5,000 (Canada: C$5,000)
- Relocation: up to $10,000 (Canada: up to C$10,000)
Baker Tilly Virchow Krause
- Base: $66,000
- Total Cash (sum of above): up to $66,000
- Signing Bonus: $4,000
Bain & Company
- Base: $83,500 (UK: £45,500)
- Performance Bonus: up to $12,525 (15% of base)
- Total Cash (sum of above): up to $96,025
- Retirement: 4.5% of base + bonus into 401k, no contribution required
- Signing Bonus: $5,000 (UK: £3,000)
- Relocation: $2-8,000
Boston Consulting Group
- Base: $84,000 (Canada: C$78,000) (Aus: A$67,000) (Germany: €68,500)
- Performance Bonus: up to $16,800
- Total Cash (sum of above): $100,800
- Retirement: Profit sharing deposited into 401k account
- Profit Sharing: up to $4,400
- Signing Bonus: $5,000 (Canada: C$8,000) (Aus: A$15,000)
- Relocation: $2-8,000 (Germany: €3-10,000)
Booz Allen Hamilton
- Base: $75,000 (Dubai, Abu Dhabi: $60,000)
- Performance Bonus: $11,250 (Dubai, Abu Dhabi: up to $9,000)
- Total Cash (sum of above): up to $86,250 (Dubai, Abu Dhabi: up to $69,000)
- Housing Allowance: (Dubai, Abu Dhabi: $15,000; $22,000 if married/family)
- Relocation: up to $5,000 (Dubai, Abu Dhabi: up to $15,000)
Deloitte
- Base: $88,000 (Canada: C$70,000) (NZ: NZ$47,000) (UK: £39,500) (Germany: €50,500)
- Performance Bonus: up to $13,200 (15% of base) (UK: up to 5%)
- Total Cash (sum of above): up to $101,200
- Retirement: 6% match for 401k
- Signing Bonus: $12,500 (Canada: C$5,000) (NZ: NZ$2,000)
- Relocation: up to $2-5,000
Ernst & Young
- Base: $75,000 (Canada: C$58,000)
- Performance Bonus: None
- Total Cash (sum of above): $75,000
- Retirement: 6% match of base into 401k
- Signing Bonus: $3-7,500
- Relocation: up to $2,000
FTI Consulting
- Base: $68,000
- Performance Bonus: up to $10,000
- Total Cash (sum of above): up to $78,000
- Signing Bonus: $7,000
- Relocation: up to $1,000
Huron Undergraduate/Master’s Salary
- Base: $67,500
- Performance Bonus: up to $6,750 (10% of base)
- Total Cash (sum of above): up to $74,250
- Retirement: 6% match of base into 401k
- Stock: $5,000 (25% match of personal investment up to $20,000)
- Signing Bonus: $5,000
- Travel Bonus: up to $3,750 (typically $3,000)
- Relocation: up to $2,000
IBM Global Business Services
- Base: $70,000 (Canada: C$68,000)
- Performance Bonus: up to $8,400 (12% of base)
- Total Cash (sum of above): up to $78,400
- Retirement: 5% match of base into 401k
- Signing Bonus: $7,000 (Canada: C$5,000)
- Relocation: up to $3,000
KPMG
- Base: $68,000 (Canada: C$62,000) (UK: £32,000)
- Performance Bonus: up to $8,160
- Total Cash (sum of above): up to $76,160
- Signing Bonus: Rare
- Relocation: up to $2,000
L.E.K.
- Base: $74,000
- Performance Bonus: up to $14,800 (20% of base)
- Total Cash (sum of above): up to $88,800
- Signing Bonus: $7,500
- Relocation: up to $2,500
McKinsey & Company
- Base: $83,000 (Canada: C$80,000) (Germany: €67,000)
- Performance Bonus: up to $18,000 (Canada: up to C$24,500)
- Total Cash (sum of above): up to $101,000
- Retirement: 7% of annual compensation (Canada: C$10,000 to RRSP)
- Signing Bonus: $5,000 (Canada: C$5,250)
- Relocation: $2-10,000 (Germany: €3-€5,000)
Mercer
- Base: $65,000 (Canada: C$55,000)
- Performance Bonus: No bonus, instead 1.5x pay for hours over 40/week
- Total Cash (sum of above): $65,000 + overtime
- Signing Bonus: $3,000
- Relocation: up to $2,000
Oliver Wyman
- Base: $80,000 (Canada: $75,000) (UK: £43,000)
- Performance Bonus: up to $16,000 (20% of base salary)
- Total cash (sum of above): up to $96,000
- Signing Bonus: $10,000 (Canada: C$10,000) (UK: £7,000)
- Relocation: up to $2,000
Parthenon-EY
- Base: $92,000 (UK: £46,000)
- Performance Bonus: up to $10,000
- Total Cash (sum of above): up to $102,000
- Signing Bonus: $10,000 (UK: £4,000)
- Relocation: up to $2,000
PwC
- Base: $72,000 (Canada: C$61,000)
- Performance Bonus: up to $10,800 (15% of base) (Canada: up to $9,150—15% of base)
- Total Cash (sum of above): up to $82,800
- Signing Bonus: $5-10,000
- Relocation: up to $2,000
Strategy&
- Base: $90,000 (UK: £42,000)
- Performance Bonus: up to $9,000 (10% of base)
- Total Cash (sum of above): $99,000
- Retirement: 6% of base + up to 5.7% of bonus into 401k, no contribution required (5 year vesting period)
- Signing Bonus: $10,000 (UK: £5,000)
- Relocation: up to $8,000
ZS Associates
- Base: $75,000 (Canada: C$75,000)
- Performance Bonus: up to $7,500 (10% of base) (Canada: up to C$7500—15% of base)
- Total Cash (sum of above): up to $82,500
- Retirement: 3% match for 401k
- Signing Bonus: $5,500 (Canada: C$5,000)
- Relocation: up to $4,000 (Canada: up to C$2,500)
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