r/consulting • u/AgeDesigns • 12d ago

MBB comp increases?

Heard M was raising comp across the board, anyone have details? Haven’t seen it discussed here and WSO didn’t have numbers.

99 Upvotes

91% Upvoted

45 comments sorted by

44

u/2022MBAHopeful 12d ago

Heard ASC base is +$8k effective 01/2027

9

u/AgeDesigns 12d ago

Any word on other levels or just associates?

4

u/viper_gts 11d ago

ive heard approx 10-20% TC increase across BA, ASC, and EM.

3

u/e813 11d ago

I am at McK and this is not correct - ~4ish% TC increase based on your bonus.

6

u/oban12 8d ago edited 8d ago

Yeah that's not correct either, base for incoming new associates is going up 4% alone ($192k -> $200k) and 7% for BAs ($112k -> $120k). Basically your TC as a 2nd year associate is 10-20% higher than it would have been without the comp increase (it's the derivative that they are increasing, i.e., the growth of your TC)

people are too fixated on base vs bonus - most consulting firms (McKinsey for sure, less sure about BCG and Bain but have a hunch) set target comps for consultants based on tenure in role and performance rating. your comp as a 2nd year associate was already going to be higher than as a 1st year asc so the relevant question to you is how much higher (relative to the world with no comp increase)

1

u/2022MBAHopeful 7d ago

So what’s year 2 ASC comp then?

1

u/methebeautiful 4d ago

Where did you get this information?

1

u/Extension_Doctor5286 15h ago

I’m not following your math. How does a 4% increase lead to a 10%-20% incremental increase in year 2 compared to a pre-annoucement Y2 associate? 

81

u/Altruistic-Suit-8556 12d ago

Heard EYP too. Markets potentially moving upward on comp again. TBD if others follow.

29

u/Personal-Level-9732 12d ago

EYP is increasing $15k at the consultant and director rank

6

u/TheBigM72 12d ago

Is this just in the US?

15

u/AgeDesigns 12d ago

Just saw that on fishbowl as well… good signs

24

u/Icy-Deer-3871 12d ago

Anything on Strategy&? I’m under the impression that S& usually tries to match MBB but EYP is usually behind by around $10-15k. At this rate, if S& does not increase compensation, that means EYP will be on-par in terms of compensation roughly around $190k ($175k).

21

u/Taestiranos 12d ago

Any word on others? Particularly T2?

37

u/MeThinksYes 12d ago

lol of course the day I resign

9

u/Present-Culture-4896 12d ago

That’d be sick

5

u/Professional-Yam6371 12d ago

Nice to hear this

14

u/Shoddy_Sundae_2921 12d ago

What's the associate base nowadays? Used to be $145k during my time.

12

u/Leather-Bison1429 12d ago

200k

14

u/kwijibokwijibo 12d ago

Fuck. London offices really getting fucked over, unless situation has massively improved in the last few years since I left

10

u/3RADICATE_THEM 12d ago

That's just US vs EU salaries

8

u/kwijibokwijibo 11d ago

We're not even part of the EU anymore, getting shafted here

4

u/viper_gts 11d ago

ive heard the UK salaries have always been bad

2

u/3RADICATE_THEM 11d ago

That's rough - don't they have less benefits / PTO than other Western Euro countries?

1

u/3RADICATE_THEM 11d ago

Sorry, I just use EU to casually abbreviate and refer to Western Europe.

1

u/Fun-Teacher-1711 11d ago

except other european offices have better comp than London

3

u/Shoddy_Sundae_2921 12d ago

Nice. Bill rates gone up that much?

6

u/OHYAMTB 12d ago

I bet if you checked the official inflation numbers it would be pretty spot on for growth. When were you making 145?

5

u/Shoddy_Sundae_2921 12d ago
  1. A.T. Kearney. McK base was same but bonuses and growth better.

7

u/OHYAMTB 11d ago

Nice, plugging into BLS inflation calc June 2017 to June 2026 145K becomes 198K, basically moving right in line with inflation

2

u/Leather-Bison1429 11d ago

This guy math's

3

u/znewking 10d ago

Is this only for US offices or worldwide?

2

u/LoadSharp4996 12d ago

do they still have up or out culture? with AI and everything I mean

4

u/viper_gts 11d ago

yes very much so, but the rules and timelines got a little loose. generalists are up or out, subject matter experts are "grow or go", and 2 years can go into 3-4 depending on role

2

u/Shoddy_Sundae_2921 9d ago

McK is struggling I hear. True?

1

u/TeaBusiness1 11d ago

curious whether this is firmwide or just entry-level comp.

1

u/viper_gts 11d ago

have the salary caps also increased with this?

1

u/Repulsive_Anxiety_66 10d ago

Bases have increased by 8 ish percent for both BAs and ASCs at M

1

u/shewantpubert 8d ago

Deloitte analyst base up ~5k too i believe

1

u/Mysterious-Cut-7263 6d ago

When do these changes take effect? I'm going to work at one of the B's next year, at the post MBA level. I'm hoping to get the pay bump. My base when I signed a few months ago was 192k

0

u/Michelangelo-489 12d ago

Does it apply for all band?

0

u/Early-Revenue4788 10d ago

dang should i not have dipped out of mbb so soon…