Why are the London MBBs so competitive when the pay is so much lower than the states? Even when compared to LCOL cities?

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Lol what? You’re comparing apples and oranges. You have to compare MBB relative to rest of London / EMEA. Yes, US is paid more but they also have to then deal with all the crap that comes with living in the US - fewer holidays, shitty healthcare, expensive insurance premiums, trips confined to NA (unlike Europe), poor labour protection laws, higher likelihood of getting shot.

I have also done several cases in the US from London and CoL in NYC / SF is genuinely way higher than London. So yes, they get paid 40% more but a large % of that gets wiped out fairly quickly due to all reasons mentioned above. After that, you might come out 15-20% richer but is that really worth it for a lower quality of life?

In London, you can be paid upto £150K at MBB 2-3 years out of UG, that’s pretty f’in good. Oh, also, did I mention the job security in a downturn? Bet tech bros at Meta aren’t feeling super great right now.

likesmart

AC1 can you please tell me more about job security during economic downturn ? How is it better in London/U.K. as compared to the rest of the world. I’m new here and have been worried sick about job security.

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150k figure is way off

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So what’s it?

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I don’t get the people attacking the poster. It’s a valid question. MBB offices in London manage to attract a lot of people from abroad (including Americans), despite comp being so much lower than the other major English speaking market (the US).

I think it comes down to the attractiveness of London as a place to live. It’s a great city, extremely well located to travel around the world. The UK is largely a more pleasant and equitable, and less stressful place to live.

You are also still compensated extremely well relative to other careers. Life in London isn’t comparable to a mid-tier US city, so you’d need to compare to a Tier 1 US city where higher cost of living will erode some of the pay gap.

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Why are you comparing UK pay with US pay? How is that possibly relevant?

Please, please explain. I've heard this madness before on this forum and I really want to understand the logic underpinning the question.

likesmart

London is the greatest and loveliest city in the world. I’m a native New Yorker and work from there 5 months out of the year because I love it so much. But could never work a local job due to the massive pay cut. Most Americans just want to live the London lifestyle and will sacrifice their pay for a few years just to enjoy the city.

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Its pretty simple. Demand supply. Anyone from anywhere can be hired into London jobs. Its a very competitive market as supply is high but but this keeps salaries low.
The US has strict visa rules and hiring people from outside the US (who need H1B which is a lottery based process) is non existent. So the internal market is the only supply pool that the US has. Add to that higher tech / banking salaries to compete with and the stronger dollar. You get the idea.

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Also, US economy is 8x bigger than the UKs. That’s the main reason why. Much bigger capital market.

Pay is still very high for the U.K. market. It has a monopoly for most of the interesting consulting work. The U.K. has a lot of well respected universities: Oxbridge, LSE, Imperial as well as many others in the Russell group.

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US can bill more lol?

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Fair point, US charge out rates are almost 2x higher. Clients just pay more money for advise there. The same CDD would cost 1mil dollars in the US vs 500k gbp here in the UK.

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Let’s take a step back - do you really have a choice which office you work in? I have known for years that the maths was in favour of the US (despite some, not all, legitimate points that AC1 makes), but it does not mean I can move if and when I want to. I had an offer to move from London to NY once, but rejected it due to personal circumstances. The firm would have only facilitated it because of a special need, and my pay wasn’t going to be wayyy higher. We love to indulge ourselves in these debates, pretending that it’s easy to get a transfer from NY to London or from Boston to Paris. Even in an international MBB firm, even when you are performing well and even if you have a few senior people liking you, it doesn’t actually mean that you will get a transfer and your pay will become 1.4x or 2x or whatever. The other way is obviously to resign, actually apply to the desired country’s consulting jobs, and then hope they will higher you because of your experience. To those indulging themselves in another round of NYC vs London COL, please first tell me how I can sort out US immigration /work visa as a British national.

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Your company can move you on an L1 (Intra-Company transfer). You have to work for 12 months for a foreign branch before qualifying for L1 and that’s the path I’m on. Also know someone in an FMCG firm who went through the same.

Or marry an American!

likefunny

You will reach 100k after 3 YOE right out of undergrad

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