This post by an ex-Mckinsey analyst reminded of a simple truth about analysts:
Don't trust their analysis, because it's usually wrong. They must earn the team's trust gradually through multiple cycles of demonstrated thoroughness and diligence.There's also a corollary to it:
Once an analyst has earned others' trust in their analytical abilities, they should be promoted to senior analyst.
He's attempted to price compensation across management consulting, but it's just not right. In salaries, a preliminary directional estimate just isn't enough.
Without further ado, here's the reality of top-tier management consulting salaries. As I've pointed out before, every strategy consulting firm has the same standard employment structure. For ease of conversation, I'll use McKinsey's nomenclature. Also, these are baselined at the first year at that position (expect annual raises of ~10% in base salary per year for good performance).
Business Analyst: (Straight from Undergrad)
Signing Bonus: $10K
Re-location Bonus: Variable, but full moving expenses (assume $10K)
Salary: $65K
Performance Bonus: $5-15K
Sr. Business Analyst: (1-2 years post-undergrad hire)
Salary: $90K
Performance Bonus: $10-20K
Associate: (Straight from MBA or APD program)
Signing Bonus: $20K
Re-location Bonus: Variable, but full moving expenses (assume $10K)
Salary: $130K
Performance Bonus: $20-30K
Extras: Optional tuition repayment if summer-interned (worth ~$30-40K, depending upon school and scholarships, typically paid over a 2-3 year timeframe)
Engagement Manager: (3 years post-MBA hire)
Salary: $165K
Performance Bonus: $40-70K (Dependent upon how much revenue you're bringing in)
Associate Principal:
Salary: $300K
Performance Bonus: $200K-500K (Again, even more dependent upon revenue you're bringing in)
Partner:
Salary: $500K
Performance Bonus: $250K-750K
Equity Share: Variable, but additional
Source: Consultant Ninja analysis
Anyone disagree with these figures?
