Has anyone here worked as a partner at an MBB as well as at a big 4? How do compensation economics compare? Is the MBB partner compensation model clearly more lucrative?

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Yes

It depends, MBB comp is more variable and significant portions are non-cash, so hard to compare — and then remember Big 4 still has pensions and MBB does not

No

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Again, it depends. Could be all kinds of things.

When someone says partners make $1m average what are the effective tax rates? Don’t you pay taxes in all states? Id the effective rate 30-35% like the rest of us or more like 60%. So while the revenue is there cash in hand is half ( while still not bad obviously)? Can any one provide clarity?

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1) not all partnerships are structured this way, though all of the US B4 are
2) when they are, no one pays 60% net taxes on all their income — you also have exposure to states with no state income tax, for example, so a lot of it nets out
3) even on a W-2, if you make $1M cash you pay more than 30-35% taxes

PwC partner comp is good but isn’t great until you get to L2 ($2M+pension). If you’re in L3 like 80% of the partners you’ll be well-below the mean of MBB. The average PwC partner is a L3M and makes about $1.25M. And typically takes 5 years to reach that level. At MBB, after 5 years you’re either a senior partner or at the up-or-out point and probably pulling $2M+ easily.

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Not true. Senior partner is <= 6 yrs

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What about Deloitte and EY ?

What do you mean about the “conservative with tax” piece? (Clearly not a tax person over here)

Any insights for the UK market? MBB vs EY-P vs S&

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