Is it possible to go into industry and ultimately achieve the same level of income as a big 4 tax partner? At what level would you leave? And what role can you get into for tax?

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I make more as a SM in industry than a first year tax partner does. So, yes, it is possible.

Leave when you are higher up and go for a position with a lot of stock comp.

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You also have to weigh COL. Partners make about the same first year (regardless of location). Also a first year partner in Des Moines earns comparatively much more than an industry director whereas in Chicago it might be about the same.

Maybe a first year partner, but not many that would get above someone a couple tiers up. I think if you left as a senior manager you could get a salary close to what a first year partner makes. But you wouldn’t get the increases partners get. A partner salary should double within a few years while the industry guy will get 2-3%.

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Seen a partner leave PA for industry. Apparently salary was in the millions

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In financial services I see quite a few of my clients making $700k-$1M, and some of them not even at executive positions. Plus they get almost free health insurance, life insurance, free gym memberships, 100% match 401k etc. While I know partners spend a lot on health insurance at EY, especially if you have multiple children, I am not even talking what kind of taxes they get withheld. So on the net basis partners make a lot less.

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Yes, but likely only as VP or perhaps through stock options.

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Possible yes. Likely, no.

I know a couple partners who took VP of Tax roles elsewhere for fortune 100 companies, etc. Massive salaries. Obviously a rare gig but to answer your question... yes it is possible.

Lots of good information here. Two comments though.

1) discretionary bonuses are not guaranteed. I know people where the discretionary bonus was 40%+ of their salary and then when the company does not meet earnings they got 0. So keep that in mind if bonuses are a big part of your salary. (Although partner earnings aren’t guaranteed either, but it won’t go from a huge number to zero)

2) I know more tax vps/directors that have been fired than partners. So you can’t exactly bank on those roles as being permanent either (although significantly less things that will get you fired).

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