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Hi, 11 likes to unlock my DM please.
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The comp plans are very different across these firms for PPMD level folks - so a better question is perhaps how they compare across a 20 year time as partner in total comp , and including retirement into the math . Also realize the tax situation is different - as are investment restrictions .
Yeah, I guessed as much. I guess I'm just wondering if it's even in the same ball park.
I guess my question really is what median comp is for partner equivalents at these publicly traded firms. Is it $500K+ with a reasonable expectation of exceeding $1M? Or does comp max out much lower?
Coach
It is less of a function of being publicly traded or private and more of a function of the profitability/pyramid to serve.
OW and Accenture both happen to be public but have very different profitability and leverage models, as do MBB and B4. Cashflow we won’t even get into….
Definitionally, all else equal splitting the pie with public shareholders means less money for the partners.
But you’re comparing across firms where all else is not equal. OW, for example, was constructed within a large public company specifically in a way that is intended to match private company return profiles, to attract private partnership partners to the business (that’s why they use the title “Partner” even though they are, obviously, not actually partners in anything).
As a general rule public company employees are a cost to be managed. The incentive is to pay them no more than the market requires. As a private firm partner, the firm exists to maximize profits for the sole benefit of the partners. I doubt the average comp of public company MDs at Accenture, CapGemini, IBM, etc is the same as the true private partnerships (MBB, Big4, etc). Surely those at the very top of public companies make amazing money. But that is a small group of executives.