How do private Consulting firms do their equity programs for their MDs or Partners? We have a program and am heading toward retirement but don’t have clarity on how we get paid out. How’s that work at BCG or Deloitte or other private firms?

like
Posting as :
works at
You are currently posting as works at

No equity program for MDs at PwC.

When we make partner, we are granted an initial set of units that we have to buy. Based on performance, you get granted additional units each year that you have also buy. Your comp is the number of units times the firm’s unit value. We also get paid a return on our invested capital (prime plus 1). When we retire or leave, you get your capital returned you. In our case, we also have a deferred tax liability that grows over the course of your career that will have to paid when you leave. That will reduce your capital payback. It’s a little more complicated than that but is the general gist.

Deloitte’s partner pension is the mechanism for capturing equity upside over one’s career. Your capital in the firm is like a bond - you put it in, get paid interest every quarter, and then get it back when you leave.

Related Posts

Anyone help one of their parents go / initiate the separation and divorce process? VA is super sticky requiring a 6 months separation… but I’m just lost on what to do. Mother is being extremely difficult

like

I need 11 likes to unlock DM. Please help.

likesmart

What are the companies present in Pune for Risk Consulting/Advisory role?

like

Need to hire a web producer for our website which is AEM platform. The role is for someone with at least 5 years experience. How critical is it that the person knows AEM vs other CMSs? Would a web producer have an easy time learning AEM if we provide training?

I have a final interview coming week and I really want that job. Any interview tips on how I can ace the interview. Any suggestion would be really helpful. Thanks

like

What will be in hand

Post Photo
like

Can anyone suggest skills or credible certification to do for joining as product manager in IT firms

like

Suggestions for where to watch the Celtics tonight? Preferably somewhere with good drinks — feels like a weird weekend in the city so looking for a decent crowd but not wild (which I don’t expect would be the case being MDW in any event)

likesmart

Hi,
I have my joining in OFSS mumbai in Oct.
But haven't received any onboarding mail.
Will it be online offline.
Can recently joined folks comment.
I have received Start date mail.
Thanks

like

would I have anxiety at any job or is this job giving me anxiety? I can’t tell the difference

like

Ernst & Young India is hiring for Tech Consulting!

DM if interested!

Post Photo

Has anyone left to go to a startup/early stage company? I’m interviewing for a role I’m excited about at a company that is aligned with my values and the chance to do finance and operations (I’m in audit, new senior). I’m nervous about making the leap from big 4 with an established culture and generally stable employment to what is essentially a giant question mark. What are some good questions or indications to get a sense of if it’s a going to be a good opportunity or a total mess?

like

How important is having a “name brand” on your resume? For context, undergrad at a top 10 non ivy that typically gets less name recognition and work experience at a T2 (LEK, P-EY, Kearney, etc). Feeling like my resume has a lot of silver but not gold. Thinking about switching jobs 2 years into consulting to either startup or small tech company (don’t want to be at FANG). Will adcoms / future job interviewers view this as a downgrade?

likefunny

HCL Technologies I recently joined hcl and I did not like my project is there any option I can change that. Hoping a positive answer.

like

How do people at Columbia/NYU afford living in NYC while paying for a 200k education?

like

“The most valuable resource that all teachers have is each other. Without collaboration our growth is limited to our own perspectives.” Robert John Meehan

like

What should be my answer to how much code u write in a day ? I don't know how to answer such questions

like

Brillio is hiring. Please check the below openings. Interested people can DM me.

Post Photo

How many days Deloitte India takes to release offer letter. I tried to contact HR she said that they are trying to get approvals and it is in progress. It's been a week that i have uploaded my docs.

like

Additional Posts in Partners Only

Does McKinsey do organization/talent/leadership development consulting? How does the practice compare to firms like Deloitte or more specialized firms like Korn Ferry?

likehelpful

Hi I moved overseas 7 years ago and am ready to move back to the US. I am in advisory and would appreciate some insight into what comp looks like at the moment at partner level. Can you share any of the following: comp, city, years of experience, specialty, employer to help guide my job search?

How frequently, if at all, are direct admit partners / MDs offered a signing bonus at B4?

like

Partners- looking for advice, or maybe just perspective. I still have trouble letting go of the details and taking personal accountability for things that are probably “minutia”. This ranges from...

like

Curious who uses brokers to manage their money (I.e. stock pickers) vs picking mutual funds approved by your firm Or combination of both. I don’t feel brokers earn their fees

like

What is median earnings (or range) for US PwC Advisory equity partner -year 5- in the Transformation Practice?

In serious discussions for putting together business case.

Any insights on how the reorg is going? or on the integration process for direct admit partners?

like

Partners, those of you that have successfully switched employment to another consulting firm as a partner, how did you navigate your non-competes?

helpful

Any insights on Slalom? Compensation, work culture, pros and cons? Why (or why not) join them?

like

Which firm has the best Industry 4.0 (Digital Mfg.) consulting / tech practice?

like

How do you lead and inspire others when you’re depressed or lacking inspiration?

I feel a little crazy saying this, but more money at this point doesn’t resonate. I see a ton of exit planning and boomerang threads here, but I’d take a 50% pay cut (or a 50% raise) for an exciting role. That’s totally privilege talking, but I just can’t imagine chasing extra money in PE or lateraling just for the money. No virtue signaling here at all. I actually worry on some level that I’m somehow a moron for not giving a thought to maximizing earnings.

likehelpful

Do we get dividends over vested RSUs?

like

Has anyone been invited to sit on a board of directors for small to mid-size companies? If yes, what process do you go through to get approval from your current employer?

like

Thoughts on introducing an RSU-type retention construct for non-partner staff at management consulting firms?

likehelpful

What is the maximum compensation senior most Partners of consulting firms make in APAC consistently (not one off great year)?

likehelpfulfunny

Is there a general expectation that a Partner has an MBA?

I doubt it's required at most firms but I'm a pretty senior staff and when I speak with Partners, they seem to speak with an MBA level of business knowledge which extends past their technical skillset.

I realize that's what makes them good Partners but it makes me wonder if I realistically need to get an MBA to keep growing and hit Partner.

funnylike

Tax question - if partners have to file in all 50 states, does establishing your primary residence in a tax free state like Florida or Texas provide any state tax advantage?

like

Curious what others risk tolerance / budget is for primary housing expense. Currently looking at houses and what I ‘can’ afford according to the math feels like way more house than I ‘should’ buy. For reference I’m a B4 7th yr partner. Last year total comp was around $1.8 and total other monthly fixed expenses are in the $20k/mo neighborhood. Just wondering how others approach this. Thanks.

like

What’s with the FT article on Nepotism? What happened?

Thoughts on leaving Big 4 to go to a smaller firm (eg ATK, OW). Proposed role is great, more collaborative culture with less sharp elbows and a metrics first attitude... impact to personal brand?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal