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The award is cool, its $100K in equity once you make manager. Issue is it only begins to vest once you make partner roughly 6-8 years later. And even then its still 4 years out till 100% vesting. Based on projections of firm growth rates, it could be quite valuable at that time though
Sounds like a very good retention plan for the company. What will happen if you leave the company after you get the equity?
That sounds cool as long as it’s a grant and people don’t have to buy the equity. If they have to buy it, would be concerned this is a short term strategy to generate cash.
AL and I may go toe to toe sometimes, but he is authentic Alex 24x7 and yes he is that happy most all of the time.
We've had it for years.
I still like ours better.
For one, the units belong to us and are not at all contingent on whether we make partner or not. I have a nice amount that I can cash out now.
Second, it’s for everyone in the company, regardless of level, regardless of consulting or corporate services. More equitable and shows that we value all our employees.
…Maybe we should brag about it publicly like Kearney.
What's the difference between a) awarding equity and starting vesting as soon as someone makes Partner and b) awarding equity to managers that doesn't actually start vesting until they make Partner?
What's the advantage for the Manager? Do Managers get a vote? Do they wind up with more valuable equity than recently feasible upon becoming a partner because said equity has been accumulating value for years? I guess the latter.
Hopefully it’s more than $100k in equity that begins to vest when I arbitrarily agree that they’ve actually responded to legitimate criticisms of their program.
Rising Star
Sounds great.
MBBK soon
MBBDK
Damn Kearney 2 working overtime to defend 😂😂
Been there… the annoying call not the loving my firm part lol
Study ESOP’s. This is not a good move to confuse partnership with ESOP. Early career consultants dont care about equity. They are going to leave - voluntarily or involuntarily. Pay off student, increase 401k match or profit sharing is MUCH better option.
This is not best seen as an ESOP. I could see it being viewed that way, but not exactly. ESOP generally refers to a specific type of program under IRS rules, but regardless that not really what this is.
A better comparison would be stock based compensation program with long and performance based vesting.
We already do this with our APs
How much M1?
Does Kearney have an owner, like a PE firm? (I know post-EDS, they did a buyback, but not sure if that’s the latest.)
100 percent partner owned, one partner one vote.
No debt.
Rising Star
Isn’t EY consulting planning to give equity once they do the split in 2023?
As a public company if and when they spin off, this much equity this broadly held would be tough. Look at ACN program.
What’s the purpose of this? Try to further incentivize the very few who already want to push for partner? When you look at the expected value and discount it back to today, this is not going to suddenly help retain a bunch of managers and principals.
MD 1
I understand and respect your point. I think an option is a good way to think about it.
When did they announce giving equity ?
Externally, Today. See managing partner’s LinkedIn post.