Think it’s rough being wrong? Just wait until you’re right.
That’s the dilemma facing Management Consulted. In its 2024 Consulting Salaries Report, Management Consulted projected “slow growth” in the consulting industry, where demand would “outpace” supply for open roles. As a result, firms would have “little incentive to boost pay.”
Fast forward to the 2025 Consulting Salaries Report and Management Consulted became the classic Cassandra. The past year played out as grim as predicted: stagnant pay and scaled back benefits. Forget the roaring 20s – as in 2021 and 2022— where firms stockpiled talent and 10% year-over-year pay increases were the expectation. Now, lean-and-mean is the industry mantra, as firms navigate through the aftershocks of economic recession, global uncertainties, and technological disruptions.
In its latest report, Management Consulted spells out issues that buffeted consulting in 2024. That starts with scandals and lawsuits. In December, for example, McKinsey forked over $650 million dollars to settle claims over its services to Purdue Pharma. In Australia, PwC generated headlines over allegedly marketing private government tax information to clients. Such incidents produced a perception problem in an industry where work is expected to be clean and confidential. That doesn’t count the hiring freezes and delayed start dates that dogged new graduates and career changers alike.
Despite the negativity, Management Consulted strikes a more optimistic tone in this year’s report. “Look below the surface, and you will see that the patient is healthier than at first glance. Demand for consulting services continues to grow, headcounts are higher than they were one year ago (although headcount growth was slower than historical averages), and starting consultant compensation is >20% higher than five years ago.”
A little Pollyannish? Maybe – but unevenness is the new normal for an industry accustomed to a ‘sky is the limit’ outlook. Now, according to the 2025 Consulting Salaries Report, turnover has slowed with more consultants staying in place. To cut costs, firms have tapped into new ways to boost productivity without adding headcount. True to form, the burden was often shouldered by junior consultants.
“Firms flexed their muscles in a loosening labor market by eliminating starting salary increases,” the report reads. This was made possible by the commensurate slowdown in Big Tech and Finance, but also in Fortune 1000 internal strategy practices – [that] were also impacted by cost-cutting.”
Bain consultants heading to an engagement. Photographer: Roger Kenny.
A DEEP POOL OF DATA
Just how much did firms flex? In an email to P&Q, Namaan Mian, Management Consulted’s Chief Operating Officer, noted that over 90% of firms froze starting base salaries in 2024. It was the second consecutive year that pay freezes have hit this threshold. Such trending gives a decided advantage to larger firms according to the report.
“The total comp gap between the top firms and everyone else remains large. While most firms kept base salaries flat this year, the top firms (who drive outsized industry growth) still offer dramatically higher variable compensation, more generous benefits, and less travel. With more attractive comp and lifestyle perks, there may be less reasons than ever for top candidates to choose smaller firms.”
At its core, the 2025 Consulting Salaries Report answers the age-old question: How much are different consulting firms paying up front to MBAs and undergraduates – and what types of perks are included in each firm’s package. Since 2008, Management Consulted has been cataloging a firm-by-firm list of bases, bonuses, and benefits. This year, it covers pay for 124 consulting firms, broken out between two groups MBA/PhD and Undergraduate/Master’s degree holders. As a whole, Management Consulted boasts over four million users between its verified website visitors for reports and podcasts, along with consumers of its case interview and resume prep services and consulting coursework. In some cases, these populations provide Management Consulted with pay offers from their firms. Other times, the data comes directly from consulting firms.
One differentiator for the 2025 Consulting Salaries Report: The numbers are based strictly off 2024 responses. Unlike data from sources like Glassdoor, PayScale or Indeed, Management Consulted doesn’t average its pay against the previous year. As a result, it is more reliable and up-to-date. Pay data is also represented in U.S. dollars for consistency.
MBB PAY STALLS OUT
Consulting pay may have remained flat in 2024, but that doesn’t mean there weren’t big differences in compensation between levels of education and firms of choice. Take top of the market pay. According to Management Consulted data, MBAs can expect to top out at $192,000 in base. By the same token, their performance bonus and signing bonus can reach $63,000 and $35,000 respectively. That’s a major upgrade over bachelor’s degree holders who landed consulting jobs in 2024. Starting out, their base hit $112,000 at the high end – or $80,000 less than their MBA counterparts. And there was a similar drop-off in performance bonus ($30,000), and signing bonus ($5,000).
If you think high-end pay starts with the MBB – McKinsey & Company, Bain & Company, and the Boston Consulting Group – guess again. At the undergraduate level, Alvarez and Marsal pays $50,400 more than Bain & Company in base and bonuses to start. On top of that, Accenture Strategy, OC&C, and CapOne Strategy hires outearn Bain bachelor’s degree hires too – at least in base starting out. The trend plays out similarly among newly-minted MBAs entering consulting. Among total compensation, Kearney tops all comers, with Alvarez and Marsal again besting Bain & Company.
Among MBAs in the MBB, Bain hires earned the most in total compensation at the max level. Here, Bain MBAs pulled in $285,000. Boston Consulting Group hires maxed out at $270,000, with McKinsey reaching $267,000. That said, for all three firms, these numbers haven’t budged over the past three years. To put this slump in perspective, from 2022-2023, Bain MBA hires watched their high-end pay jump from $246,000 to $285,000. Over that same period, BCG and McKinsey MBA hires enjoyed similar increases ($248,000 to $270,000 and $250,000 to $267,000 respectively). To put it another way, had compensation momentum continued unabated over the past three years, Bain MBAs would be collecting $383,500 in the first year, not $285,000. And the numbers would be $320,900 and $299,000 for BCG and McKinsey respectively at the top end. That’s quite a difference!
Still, each MBB firm offers something a bit different for MBAs in their starting pay packages. The bases start at $192,000 at Bain and McKinsey, with BCG coming in slightly lower at $190,000. Similarly, all three firms offer signing bonuses up to $30,000. However, performance bonus turns out to be a differentiator among the MBB firms. McKinsey caps its performance bonus at $40,000, while Bain and BCG hit $63,000 and $60,000 respectively. Bain also offers 25 days of PTO compared to 19 (McKinsey) and 15 (BCG) for MBA s out of the gate. Unlike Bain and BCG, McKinsey includes 50% 2nd year tuition reimbursement for returning interns in its package. BCG contributes more, dollar-wise, than Bain to a 401K ($11,875 vs. $8,000). For those re-locating, BCG only budgets $6,000 to cover a new hire’s cost, far less than Bain ($8,000 for under 400 miles; $15,000 for over 600 miles) or McKinsey (up to $10,100). In other words, the value of the starting package varies depending on what a new hire values.
Switch over to bachelor’s degree hires and the MBB follows a similar pattern. Bain and McKinsey start this segment out with a $112,000 base, slightly higher than BCG at $110,000. Each MBB firm provides a $5,000 signing bonus, though McKinsey’s $18,000 performance bonus lags behind both Bain (Up to $22,500) and BCG ($22,000). True to form, Bain offers more PTO days (20) than McKinsey (19) or BCG (15). McKinsey compensates re-location up to $10,000 (compared to $6,000 and $5,000 at BCG and Bain respectively). When it comes to retirement, Bain chips in up to $6,050 compared to $4,400 in profit-sharing at BCG (and McKinsey committing up to 7.5% in qualified comp). Bain and McKinsey also set aside $5,000 each for a housing allowance for undergraduate hires.
Deloitte photo
BREAKING DOWN THE BIG 4
Total compensation has also flatlined among the Big 4 – Ernst & Young, KMPG, Deloitte, and PwC – over the past three years. During the period, you’ll find top-end total MBA compensation locked into the same bands as 2023 and 2024: Deloitte Consulting ($204,000), EY Consulting ($242,000), KPMG Consulting ($210,000), PwC Strategy& ($280,000) and PwC Consulting ($245,000). Among bachelor’s degree hires, that same three-year pay lull continued at Deloitte Consulting ($107,500), EY Consulting ($90,000), KPMG Consulting ($110,000), PwC Strategy& ($132,000), and PwC Consulting ($102,000).
According to the 2025 Consulting Salaries Report, consulting firms pursued strategies that attempted to paper over the base play restrictions, such as lifting caps on performance bonuses. In the end, the pay slump reflected management restoring the balance of power after years of catering to increasingly-empowered talent.
“Many firms are using depressed raises as a tool to increase attrition,” Management Consulted explains. “With slowdowns in traditional exit sectors (e.g., corporate strategy, PE), firms aren’t worried about too much talent leaving at once.”
This is reflected in the enticements deployed by several Big 4 firms in their packages. For MBAs, EY Consulting and EY-Parthenon both feature unlimited PTO, with the latter also providing performance bonuses up to $52,500. KPMG Consulting also doles out up to 30 days of PTO, along with relocation reimbursement up to $10,000. Those 30 days of PTO also apply to bachelor’s degree holders, who receive above-average $10,000 sign-on bonuses. At EY-Parthenon, aside from unlimited PTO, undergrads also collect a $50,000 retention bonus after three years of service.
Next Page: Intern and Career Pay
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.
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