Heard only McK has global profit sharing for partners (profits shared globally not on local office P&L basis). Is this true ? What about other firms ? Of course I understand that the global profit is not shared equally but based on performance of partners but still impressive when you think about it. wdyt?

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Yes, McKinsey is a global partnership with a global P&L and partners have global profit sharing. There are some adjustments made to account for currency strengths and the likes though

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^ This. After Enron, each service line became its own LLP for liability reasons.

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It's been a while since I wore my tax law hat but I'd imagine global profit sharing is tricky to navigate tax wise. Keeping money in one country ensures it's only taxed once, but there might be instruments to circumvent the problem.

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None of the Big4 are global partnerships for liability reasons.

Hell, even within each country, Consulting/Advisory/Accounting are separate partnerships to limit liability. That's probably the main reason for absence of global profit sharing in other firms.

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Also, in a lot of firms something like 50%+ of global review is made in one geography or a handful. Why share that with lower contributing geographies?

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Our bonus and profit sharing is a global pool as well. You’ll be surprised by how many firms have one global P&L.

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Big 4 are structured differently than the strategy firms or pure play consulting firms like Accenture because they are accounting firms and subject to different regulation and liability

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