How much does a second year partner in Management consulting take home after paying nation wide taxes and let’s assume the firm had a good year (avg distributions)

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

So much bad info here. For Mgmt consulting, Cash equivalent comp at Big 4 for a second year is usually about $450-550k prior to tax, contributions, loan repayment, etc. MBB second year is between $700-1M. The former is less individual-performance driven as the comp is on a fairly set schedule. At traditional strategy houses comp can be pretty variable. At Big 4, you also accumulate a pension; at MBB, you do not. At Big 4, you have the stability of tax/audit practice revenue. At MBB, much more sensitive to commercial markets/economy.

likehelpful

Was a partner at Deloitte for 5 years, 2011-2016, advisory/consulting side and ended up owning a very large P&L my last year. From memory, gross numbers below by year (incl bonus)

$390k -> $450k -> $525k -> $585k -> $950k

likehelpfulsmart
Recent IconRecent

The Big 4 retirement amount is correlated to your cumulative earnings. So “swooping in” in your late 40’s as opposed to 5-10 years earlier reduces a lot of your pension’s potential value. I’ve modeled the MBB vs Big 4 partnership value prop a few different ways. In general, the case swings positive towards Big 4 if you’re going to be a consulting partner 15+ years. 10 or less favors MBB. Between 10-15, it’s highly sensitive to many factors that are unique to the individual and the market

likesmarthelpful

I don't really know what that info does for you

like

1. Net comp will vary wildly depending of life circumstances
2. “Every state taxes” aren’t that scary because income is divided/allocated across them.
3. The answer varies wildly by firm. New Partners at Big4 seem to make $300-400k gross. For us it’s close to (or over) seven figures
4. Even if marginal rate is 55% (which sounds too high since SS maxes out well before then), a bunch of the money is taxed at lower rates on the way through the brackets. I’d guess effective rate is closer to 40%

like

P2 is closer to what we saw. First year average Advisory partner got $525k target last year and we exceed plan so they hit more than that. If you’re in Deal Advisory/strategy you do better, if in risk you do worse. If you’re in NYC you do better, if in Cleveland, you do worse. In our firm you have to do MD, so you’re not far off the other Big 4 where it’s SM to partner and ED is a different path when comparing first year partner to first year MD take home.
But like someone else said, I don’t know what that does for you. I assume you are wondering about cash flow, but the nature of Big 4 is lots of forced savings and comfortable comp. and that’s beyond just the pension. You end up with a big nut in your partner account as well. All while having plenty for lifestyle. Different model.

helpfullike

P2 - is the pension that rich? Starting Partner comp for us is 2x B4... and starts 5-10 years earlier. Where are you finding returns that much above market? Something doesn’t fit

likehelpful

What percentage of MBB partners stay ten or more years? Much larger percentage at B4, so if the relevant model is of typical career earnings, Which admittedly could get slippery slopey, but...
Again the pension is just one of many long term comp vehicles at B4, and, depending on the firm and how long you’re partner, may not be the most material one. Collectively, however, for those out past the 10-15 year point the total rewards are pretty significant, so P2’s analysis feels about right to me.

likehelpful

Agree. Time value of money is important. I was assuming OP was asking about a direct admit partnership offer, which is also what I was considering somewhat recently.

For the record, I think for “similar business/talent models”, partner path for Big 4 Strategy/Mgmt consulting is closer to 8-10 years from MBA. Your 12-14 estimate is more appropriate for Big 4 businesses in the portfolio that are larger leverage, lower margin, and higher scale- typically not strategy/management side, but more in the execution-oriented ops/process/tech consulting practices.

likehelpful

$300k

like

In Big 4? Year 2? Take home? $200k. $400-450 comp post taxes insurance 401k loan repayment.

like

MC1- did you mean net on number 2??? 300k gross is senior manager/director money..

like

P2. So to OPs qn - likely Big4 - gross is $450 ish (I’m assuming you’re at D-end not at lower PWC-end). After everything take home is what, $200k?

like

Thank you Partner 2, appreciate the info, so to summarize ball park 200k after taxes,healthcare in hand and a promise of a big retirement $

like

BCG1- I think 2x is in a pretty extreme case. My Mck and BCG friends made about $700-800k their first year. My PwC and Deloitte friends made about $500-550k. Time of initiating conversation partner earnings is not relevant in my model as I’m comparing partner offer with partner offer as a baseline; not associate or consultant offers with expected “path to partner” timing. And yes it is not uncommon for a Big 4 partner with 20 years of service to retire with a pension in the $300-400k+ realm along with many other forms of vested deferred comp. But, as you noted, there are many other ways to earn in the market so certainly there are many other factors to consider

helpful

Just $300k? A bit disheartening given the difficulty of reaching the partner level. So many hoops to jump through...

like

So, to answer the question correctly, OP, you need to say at which firm...

like

First have to find a firm that will hire me as a partner, let’s see if MBB will hire me and then towards my late 40s swoop into Big 4 for that retirement money ..:)

like

Thanks. Main thing is that timing matters a lot to any practical application of this analysis. Unless you’re already a partner looking to lateral, timeline to partner (and comp on that runway) matters a ton. Especially if MBA to partner is 12-14 years at Big4 and 6-8 at MBB. That’s millions of dollars and offsets years of pension.

like

How would partner levels, years, vs compensation look like in Europe? Do you see any big differences between B4 and MBB in Europe vs USA?

like

Related Posts

Looking to go on a short 3-5 day trip, preferably a beach destination. Any safe suggestions at the moment? Flying out of the US and would like to use southwest.

likefunny

28/f - i feel like I am constantly buying clothes but sick of what I own and others look more out together. Any tips or tricks to buy the right pieces and not get sick of what I have ?

like

What is the Salary bracket for Analyst at Novartis Hyderabad ?? How much can I ask

like

My boss asked me to take care of some of the details of a project for her—the stuff that isn't really my area of expertise. And now I feel like a shirker because I haven't been able to finish them yet.

like

Which company should I join from below considering CTC and Technology is same:
1. ThoughtWorks
2. Boeing
3. Deloitte
4. Nokia
5. Teradata

I have 2 years of experience working as Full Stack Developer - Java at IBM. I'll appreciate if you can tell the reason as well.

like

Just did my first research to form my own opinion / interpretation and sent to the Partner for consideration and review. I hope I didn’t miss the mark lol

like

Which companies are providing permanent wfh in india?I heard about these-
1. Nagarro
2. Publicis Sapient
3. Epam anywhere
4. Cimpres
5. VMware
6. Swiggy
7. Meesho
8. Browserstack
9. Disney+ hotstar

like

We just brought a guy onto our team who specializes in Data Science and Machine Learning.

He's really the only guy on our BI team who has studied it and can do the work. Existing members of the team are interested in furthering their analytical skills and learning Machine Learning, but the new guy seems pretty closed off to showing them his work or teaching them.

The guy has worked hard; he went to top 10 schools for undergrad and grad, and has openly mentioned that the sacrifice...cont

like

No lies detected.

Post Photo
likefunnyupliftingsmart

Creative Directors, the Chicago agency I work for is looking for a creative director. PM me your book and i’ll give you the details and refer you if you’re a good fit.

likehelpful

"SIGN ON BONUS will be paid in 2 equal instalments. 1st instalment will be paid at the time of joining *** in the first payroll cycle with a clawback of 1 year period. Second instalment will be paid 6 months after the date of joining with a clawback of 1 year period applicable from the date of completion of 6 months"

Does this mean i have to work mandatorily for 1.5 years or 1 year?

like

Would you rather go to a smaller agency and work fully remote, or go to a very large financial company (talking 10,000+ employees) which the company policies are very by the book? This is for a social role. TIA!

like

Are Indian citizens eligible to apply for global entry or only the tsa pre?

like

Hi fishes, please provide me your valuable guidance Capgemini

Post Photo
like

I am an aspiring entrepreneur and want to start a business in future for sure. I have a few ideas but nothing concrete, or close to being a start up yet. I work in tech, but a generalist - have done sales, delivery operations etc. trying to get experience in as many areas as possible before I go on my own. I dnt know where to start the journey. Are their any books or other material I can read/reference to think and plan about my entrepreneurship journey. I m in mid 40s based in t2 city US east.

like

Does anyone here use Avalara or Vertex? Interested in hearing any likes/dislikes and how the user experience is.

like

CPA and accounting manager in financial services. I’m thinking of taking on the finance extension at UCLA. Does this make sense for my situation? I’m looking to make CFO someday of an investment company.

like

How long does Stripe recruiters take to reply back after final interviews for a Software Engineer role in the bay area?

like

Additional Posts in Partner One

like

Deloitte PMDs, whats the process/steps for SM to MD promotion? Especially in non-client facing roles.

like

Partners I want to move into SC at a tier 2 but have poor grades. Made SA at PwC in 2 years and great ECs and top 5 UG.

If I brought you work would I get hired for SC? Or doesn't work like that at T2

like

Do you think of your technology employees as staff augmentation consultants or not really true consultants as much as contractors?

like

Did any of you take the MD to P path, any feedback from your experiences

like

Coming into one of the big 4 as a PMD from the outside (agency holding co). How would you spend your first 90 days?

like

Hi. Please for the love of god stop saying something “should only take x hours”. It never does! Ever! You guys suck at forecasting work, and for every additional one of you on the thread, add 30% to the runway.

Thanks.

likefunnysmart

Has anyone taken leadership coaching as part of their growth plan? Any recommendations?

like

What can I do when a partner on my engagement doesn’t listen to me and makes bad judgment calls, gets us into bad situations despite of how I advised him against, he pulls rank and makes executive dec

like

Can someone explain what early retirement means? How does that work if you are a partner?

like

Any tips on tactfully getting off an unending role (7+ years)? Has been a great place to start and grow a career. That said, I'm ready for a new challenge but worried I can't leave without quitting

like

Can you be married to a partner at another Big 4 if you’re a partner at a big 4 (I.e. If I’m a partner at pwc can I be married to a Deloitte partner)?

like

25M here. What is a good approach to asking out women in their mid 30s and 40s? Looking to avoid coming off either too forward or bashful. Thank you!

funnylikehelpful

Can anyone recommend a career coach?

like

Does anyone feel that despite assurances, metrics are closely being monitored and some partners will be separated for poor performance prior to covid 19?

like

Do any partners ever leave the firm by choice? Say, to pursue their own startup or CEO of an established company? Or to pursue their own personal interests in another area like art, politics, etc.?

How ‘locked in’ are you - either electively or contractually - at Partner grade?

I’m going through the Partner process at my firm but am getting really interesting offers from industry that I feel I’d be missing out on.

Part of me thinks ‘make it to Partner first, tick that box, then jump’.

Should you only embark on Partnership if you’re sure it’s what you want to do for the rest of your career?

like

How do you raise your kids without the making them feel privileged? Im on the partner track and seriously concerned about it.

likeuplifting

Partners, has your lifestyle changed significantly since you started as an entry level consultant at your firm especially if post MBA? Just curious if expenses go up as a percent of income.

I’ve yet to find a partner at D to admit an MD is NOT the same thing as partner even power wise. A SM told me it’s like the firm recognizing you are not good enough for partner but too good to let go!

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