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What are the pay grades for C's and M's in S&C?
Bowl Leader
Can anyone tell me the Manager bandings for S&C?
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Rising Star
I figure AD promotion for an SM is 20% increase on a base of £110k (assumed SM with 4-5 years TAL). That's £138k plus car ~£145k. You can get double equity (£26k) and maybe a 10% bonus ~£14k. That's ~£185k (and probably year 2 as you wouldn't be entitled to double entity with year 1). You also get pension which if you are timing it well should be around 10% - so total package could be:
138
+6.5k car - 145k
+26k equity - 171k
+10% bonus/14k - 185k
+pension/10% 14k - 198k
An MD year one would be
145k base
6.5k car - 152k
+200k equity (vesting over 5 years) so assume 40k for year 1 - 192k
+20-30% bonus/30k for year 1 - 222k
+VEIP at 35% of base = 50k invested gives 16k benefit in year 1 - £238k
I am ignoring further equity grants in year 1 for the MD. You could argue the 1/5th share of the 200k isn't real until year 6 but I think that is less correct mathematically for comparison.
Need to factor though what is variable dependent on performance or prioritisation of the junior levels or market pressures locally or market pressures globally ... In other words all the reasons we haven't got bonuses, RSUs or pay increases in years. AD allows for exit at any point but MD challenge is lock in with veip and hope over 5 years the stock price doesn't go down. Which generally it hasn't until recent years. when you factor those variables MD may win out but not by as much as what one might consider and removes freedom to leave without losing money...
Rising Star
The variable element for both MD and AD is broadly the same - equity and bonus. For an AD, the equity award is less guaranteed as it is considered pure upside based on performance against your peers (you are laddered within the same SM pool you came from). Remember in the AD pool as well, you will be up against ADs who have been parked there for several years (even decades). Good luck getting a double equity award when you are the smallest fish in a well established pond!
For an MD, the equity award is more certain, or at least it is more prescriptive what you need to do to get it, as that's part and parcel of your compensation (you achieve X, we give you Y). Obviously if an MD doesn't meet their target they won't get the full award; so it works both ways.
For MDs, the VEIP is not locked up for 5 years. It is locked up for 2 years. It basically means MDs are cash poor for 2 years, and then they reap the benefits big time. This upside is in lieu of pension though, so some maths required (year 1 MD VEIP could be 50k locked-up to gain 16k --- a year 1 AD will be getting 14k in their pension for the same period: this is a delta of 2k, but the MD can access it in 2 years vs. the AD waiting until they're 57 [or older if the government move the goal posts]). There is a summary on VEIP here: https://adventurewealth.com/accenture-voluntary-equity-investment-program-veip/
The actual stock price for MDs is secondary as they get a free share for every 2 they buy. Stock price can go up or down for anyone who owns it, so is not super relevant to the conversation/can be isolated.
The 200k equity award is also pure upside, if they survive 5 years. You'll hear some sob stories about MDs who were awarded their 200k at $400/share but they're still 150k+ up.
I think in summary I am highlighting why the AD route came about. It is not a substitution for MD, it is a different path that has significantly more risk, and therefore upside; but only if you can make it work (i.e. you can make claim to a specific value that is measurable). The AD route is simply a very expensive Senior Manager who is not incentivised in the same way to grow the business as an SM. It is down to MDs to get the value out of ADs, and that is where AD can feel just like SM.
MD package is far more lucrative if you are in the sub 40 year old category. I think the maths gets harder if you are getting the max Accenture pension contribution (at 50 and over in the AD category you are making £21k in just pension from Accenture at ~150k base). The difference then is how quickly you want to access the money (as pension is locked up until you are 57).
So you are right - AD is more flexible; but MD isn't far behind (2 years before VEIP starts paying dividends). And the opposite is true from a personal wealth point of view, MD will pay in 2 years --- a good chunk of AD wealth won't pay until you are 57 or on your death bed.