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I’m not PWC, but typically MD is a non-equity executive, partner is an equity owner, and principal is the official title given to a partner who doesn’t hold a CPA license (but a principal and partner are otherwise the same as far as ownership and comp and distributions and all that).
EY is correct. MD is our highest staff class (non-equity) designation. Unlike some places, typically after director one would become a managing director or a principal/partner. It is rare to become a MD then principal/partner down the road, unlike some places (i.e., KPMG). MDs are often subject matter experts or have their own client base with lower revenue goals if in the market.
A principal is a partner without a CPA. I’m a JD/LLM. There is no functional difference between a partner and principal beyond that as both are equity holders.
It’s apples to oranges because they’re different categories with MD’s being employees receiving a salary (W-2) whereas partners do not (K-1). There are many MDs who are paid very, very well and have more take home pay than new partners. There is more upside being an equity holder but more expenses as well (i.e., we pay SECA, do not get healthcare premiums subsidized, etc.).