Consulting Pay: What MBAs Earned In 2024 by: Jeff Schmitt on January 29, 2025 | 26,724 Views January 29, 2025 Copy Link Share on Facebook Share on Twitter Email Share on LinkedIn Share on WhatsApp Share on Reddit Colleagues meet in the London office. More than 76 nationalities are represented at McKinsey offices across the UK INTERN PAY In terms of total cash for MBAs, Kearney leads the pack at $288,800 at the high end, edging out Alvarez and Marsal ($287,500). Among undergraduate hires, Alvarez and Marsal is the dominant player at $190,000 starting out. Let’s just say Alvarez and Marsal isn’t afraid to invest in its talent. Among undergraduates, performance bonuses can rise as high as $51,000 – not counting a $10,000 sign-on bonus. For MBAs, Alvarez and Marsal performance bonuses ranges from $52,500-$87,000 in the first year – both of which can exceed what graduates can earn at MBB firms. That’s the cost of competing in management consulting – and many boutique firms shower new hires with benefits beyond the usual pay parameters. For MBAs, Allman Salon covers tuition up to $80,000 over two years, while ZS Associates reimburses second-year tuition (along with providing up to $17,400 for cost-of-living adjustments). Along with a $35,000 sign-up bonus, Accenture Strategy tacks on another $17,500 for returning interns (with Oliver Wyman dangling a $15,000 early sign-on bonus on top of another $30,000 bonus). Kearney will go up to $16,000 for relocation, while OC&C Strategy Consultants provides $800 as a wellness reimbursement annually. In turn, Accenture hands out 15% discounts on stock to bachelor’s degree hires. At Cornerstone Research, that same population enjoys relocation perks that covers 100% of moving expenses and all broker fees. Before new hires can enjoy such perks, they must prove their value during internships. Here, Management Consulted supplies an array of data. Covering 10 weeks of internship pay, the 2025 Consulting Salaries Report reflects a range of compensation models. Among MBB firms, MBAs can expect pay that stretches from $36,358 (BCG) to $40,000 (Bain Company). As a whole, NERA Economic Consulting pays the most at $43,250 (plus a $1,250 sign-on bonus). However, this doesn’t cover the potential for overtime. For example, KPMG Consulting pays $66 an hour – which rises to $99 an hour with overtime. In addition, Accenture Strategy will pay up to $5,000 for interns to relocate, while ZS Associates will include a $5,000 sign-on bonus for interns. At GEP Worldwide, MBA interns can even collect a $2,500 performance bonus. Not surprisingly, intern pay is less for students from undergraduate and master’s programs. Strategy& and EY-Parthenon pay the highest hourly rates at $49 and $45 respectively, a far cry from the $75 rate paid by FTI Consulting and Mercer Management and HR Consulting to MBAs. That said, Alvarez and Marsal doles out $40 an hour to undergraduates, which climbs to $60 an hour with overtime. Among MBB firms, the high is $22,500 (Bain) and low is $21,150 (BCG). Beyond the usual pay structure, PwC and West Monroe commit $3,000 to sign-on bonuses, while Bain & Company and Mercer Management and HR Consulting allocate $1,000 to relocation and housing respectively. For returning alumni of its Growing Future Leaders (GFL) program, the Boston Consulting Group distributes a $10,000 signing bonus. Extensive training for BCG Summer Consultants complements their immersive “on-the-job” learning and mentorship CAREER PAY IS LUCRATIVE…IF YOU CAN STICK IT OUT Alas, there are holes in the 2025 Consulting Salaries Report – which Management Consulting is quick to admit. For one, sign-on bonuses are a one-time form of compensation that artificially bumps first-year numbers. At the same time, consultants rarely max out their performance bonuses. Generally, the ceiling is only hit by 5%-10% of consultants. Even more, the pay trajectory has grown increasingly uncertain as firms squeeze the new hires at the bottom to better tamp down costs. Even more, consulting is an up-or-out proposition, where above-average performers look to hit an off ramp to maximize their earnings and average performers are gently prodded out of their roles to make room for high potentials. “You typically receive a pay increase when leaving, as well as a bump in lifestyle,” according to the report. “In the U.S., the average consultant who accepts an industry position receives a 12-20% increase in pay and a better work-life balance. Those entering the financial services industry receive a 30%+ increase in compensation—but work/life balance often takes a hit.” What can consultants expect to earn after their first year in a consulting firm? That depends on how far they want to go. After all, a consulting career unfolds in specific stages, each with their own milestones and increased expectations. That’s one reason why Management Consulted plots out a “Salary Growth Trajectory” in its annual Consulting Salaries Report. In this trajectory, Management Consulted pays special attention to MBAs. It estimates a starting base of $190,000 and performance bonus of up to $60,000 for first-year graduates (not counting a one-time $35,000 signing bonus). Within 2-3 years of starting, MBAs are expected to move into a manager or project leader role, which would pay a $220,000-$240,000 base accompanied by a performance bonus of $100,000-$140,000. Within five years of earning an MBA – provided performance remains stellar – a graduate should be elevated to an associate principal or senor project leader role, which would pay anywhere from $275,000-$350,000 in based along with $150,000-$250,000 in performance bonus. At the 6-8-year mark, according to Management Consulted, MBAs should be moving into junior partner or principal roles, which pay $375,000-$450,000 in base on top of a bonus that can range from $375,000-$575,000. After a decade, the hope is that MBAs will assume the mantle of senior partner or director, which pays a $500,000-$750,000 base and a bonus that can extend $500,000. The caveat: Only a small percentage ever make it to partner. While firms don’t disclose this information, you’ll find MBB alumni pegging the number between 2%-5%. Another truth: an MBA delivers a distinct advantage to generating higher earnings early in career. According to Management Consulted, undergraduate and master’s hires average $110,000 in base and roughly $30,000 in performance bonus. Assuming a 10% pay increase – an anomaly in this market – a non-MBA can expect to earn $191,943 in base within six years of graduation. Compare that to MBAs, who start at a $190,000 base – likely after four years of work and two years of business school. HOW MUCH DO FIRMS REALLY NEED MBAs? That’s not to say MBAs will continue to set the market like years past. The 2025 Consulting Salaries Report notes that firms are beginning to reach the limits of how much they can charge clients. To increase margins, firms have already been pursuing less expensive specialist and pre-MBA talent. Notably, McKinsey’s MBA intake was just 20% of its hiring last year, according to Management Consulted. This mirrors a larger trend according to the report. “First, full-time MBA hiring was more impacted in 2024 than fulltime pre-MBA hiring. Second, while some firms are maintaining the size of their intern classes, they are adjusting the intern mix – increasing the number of undergraduate and specialty masters’ interns they are hiring at the expense of MBA interns.” The trend also exposes an uncomfortable consideration, adds Namaan Mian. “Perceptions of the value of an MBA are all over the place. The comp spectrum for MBA hires is broad, while it’s consolidated for undergrad hires. This tells me that the value perception of an MBA degree is mixed. Firms historically pay MBAs twice as much, but don’t get twice the value from them. This doesn’t fly in an efficiency-oriented environment. This is why we’re seeing less hiring from MBA programs and more from undergraduate ones. This also increases the need for robust training programs at all companies – you never “get what you’re paying for” with a new hire. Getting a return on investment on your talent actually requires continual investment.” This shift also creates opportunities for boutiques and MBAs alike, adds Mian. “Smaller companies have a unique opportunity to recruit “higher end” talent at lower rates as the bigger firms reduce MBA hiring. This changes the types of opportunities that candidates should be pursuing, but also changes the candidate profile that smaller companies can target.” AI: FRIEND OR FOE? The consulting industry is also facing down several disruptive forces. Mian points to the growth of in-house strategy groups at organizations that previously relied heavily on consulting firms. Such operations could drain both revenue and talent from top consulting firms. “The investment in internal strategy teams across the Fortune 500 is notable in terms of headcount and compensation,” Mian explains. “Companies are dedicating teams to work on the business instead of in the business, and the implications are many. First, it puts a downward pressure on the rates consulting firms can charge. Second, it opens up more opportunities for candidates looking for consulting roles. Third, it provides a model for businesses of all sizes to not outsource strategy work, enabling a nimbler approach to ever-increasing changes.” Not surprisingly, the shadow of artificial intelligence also looms over the consulting industry. For consulting firms, AI provides more robust functionality to solve problems. Even more, it supplies firms with greater business opportunities as clients grapple with what AI means and how to leverage it. Mian admits that AI will also cut into the need for talent too. “AI enablement is enabling consulting firms to accomplish more with fewer hires. Productivity gains, combined with slower attrition, reduce the need for new hires and stall salary growth. We’re still in the early innings of AI adoption, but those who are slow to explore AI enablement will fall exponentially further behind.” NO BIG TURNAROUND What does 2025 hold for the consulting industry. The 2025 Consulting Salaries Report predicts that IPO and M&A work will pick up, which will provide more engagements as it tempts talented consultants to jump over to the financial services industry. The report also projected growth in sectors like healthcare, supply chain, cloud services, and strategy and operations. Still, Management Consulted expects compensation growth to remain “muted” since the “white-hot” growth of the consulting industry will remain in the rearview mirror – even as the workload grows in 2025. “Consultant utilization will rebound,” according to the report. “There is a limit to the short-term productivity increases that AI will bring to the consulting industry. Due to rebounding demand and smaller headcount, we expect utilization to increase in 2025. This should lead to decreased retention and a slight increase in hiring in 2026.” To download the full 2025 Consulting Salaries Report, which includes detailed pay information for 124 consulting firms, click here. DON’T MISS: TOP 50 CONSULTING FIRMS TO WORK FOR IN 2024 TOP CONSULTING FIRMS ARE ‘NO HELP AT ALL’ ACCORDING TO STUDY Previous PagePage 2 of 2 1 2