Is anyone able/allowed to explain how equity works at firms like AlixPartners and Alvarez & Marsal? Is it similar to a pension at Big 4? (Cross posting w/ the Consulting Bowl.)

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Well if we assume that McKinsey Senior Partner compensation is good, if someone hires said partner to do the same thing at a different firm, the expected compensation offered by this new firm would likely be similar or better to existing compensation.

If said partner has poor sales and their current compensation is low, why would another firm hire said partner with no proven ability to generate and maintain a book of business? I suppose it’s possible, but seems unlikely.

Said partner could also have left for lesser compensation, which while possible, again, seems unlikely

If you dispute that McKinsey senior partner comp is good, you could be right and my entire logic is flawed. I’m not a McKinsey senior partner. 🤷‍♂️

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I don’t know either, but A&M just hired a senior partner from McKinsey, so the comp must be good

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I don't know much about this. I do know that they don't have bonus Caps or they are far stretched at A & M and AP. Hopefully someone else can shed more light on your specific Q.

Yeah, topic seems to be taboo or too specific. Appreciate the feedback.

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Lol. See how much holes you've pointed out. Makes my point. Snr mck partner is a signal but that's all. He could be tired of the high burn and be super rich already and just wants to do leadership/IC work. He could be coming there hoping to be groomed as next CEO, he could be pushed out of the firm and have a non compete with direct competitors. It could be anything, and one situation with no additional context just makes me uncomfortable to make that conclusion.

Think this all fair, one senior partner is not enough to establish anything. However revenue / consultant or employee is a good proxy for understanding partner compensation and A&M and Alix rate well on this metric even compared to MBB.

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