How is partner pension sustainable? Other companies like airlines that had pensions went under.

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It’s not.

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Correct.

Because we have an ~50% profit margin and manage the number of partners (and therefore future retirees) that are admitted. The PPMD pension is also less generous for newer partners than it was in the past.

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We also cap the benefit if the firm has bad years.

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While not a pyramid scheme it is a pyramid, which requires growth to work. They’ve grown. For now.

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It’s not. At least not at current levels. Which is why partner pensions are unfunded, constantly being slashed, being offered to fewer and fewer PPMDs, and rely on MLM-style growth from mass hiring underpaid junior level employees and then laying them off in droves before they become too expensive. There’s a reason the Big 4 pay so much less than other consulting firms and the way partners are compensated is a big part of it

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What are the specific examples M1? The Platinions and Invertos of the world are largely comparable. There are boutiques that will pay more for Big 4 talent, but the comp mostly stalls out afterwards

Pensions are not *inherently* unsustainable.

What drove airline and other pensions under was promising too much on the benefits side and not funding said benefits appropriately.

See other responses for how partner pensions are more or less sustainable in this day and age.

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P1 - which is why, in reality, they are not by definition "pensions"

Well that’s the reason of pushing more MDs than Partners. More MDLDs than MDs. Yes MLM scheme.

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