Revealed: McKinsey partners charge $16,000 a day (before discounts) (2024)

FAQs

How much does McKinsey charge? ›

How much does McKinsey charge its clients? McKinsey charges its clients between $500,000 to $1,250,000. This cost varies depending on the length of the case and the number of consultants required.

$559,138. The estimated total pay for a Partner at McKinsey & Company is $559,138 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $237,606 per year.

Among other things, the company has been criticized for its role promoting OxyContin use in the context of the opioid crisis in North America, its work with Enron, its work for authoritarian regimes like Saudi Arabia and Russia, and for its involvement in government corruption scandals.

Management consultants have consulting billing rates that range between $100 to $350 an hour.

McKinsey & Company's PTO and Vacation policy typically gives 20-30 days off a year with 67% of employees expected to be work free while out of office. Paid Time Off is McKinsey & Company's most important benefit besides Healthcare when ranked by employees, with 50% of employees saying it is the most important benefit.

You have very little room to negotiate. Even if you have an offer from McKinsey, Bain, and BCG, you may not be able to leverage your other offers to negotiate for an increase in compensation at another top firm.

The estimated total pay for a Senior Vice President at McKinsey & Company is $575,784 per year.

Bryony Winn is a Partner in McKinsey and Company's Chicago office and a leader in both the Healthcare and Deals and Transactions practices.

McKinsey last year agreed to pay $641 million to settle claims from US states that the company contributed to the opioid crisis by providing marketing strategy services to manufacturers of opioid painkillers such as Purdue and Johnson & Johnson. McKinsey admitted no wrongdoing in the settlement.

How much does McKinsey CEO make? ›

At McKinsey & Company, the most compensated executive makes $507,000, annually, and the lowest compensated makes $79,000. Comparably has a total of 37 salary records associated with McKinsey & Company employees.

The firm's budgeting is centralized, but individual consultants are given a large degree of autonomy. Since the 1960s, McKinsey's Managing Partner has been elected by a vote of senior partners to serve up to three, three-year terms or until reaching the mandatory retirement age of 60.

Consultants don't get paid for time spent bookkeeping, networking, marketing, and a variety of other non-billable activities that need handling when you run a business. Consulting fees must take this downtime into account. Everything from professional memberships to paperclips – a self-employed consultant buys it all.

As of Feb 18, 2023, the average hourly pay for a Consultant in the United States is $43.90 an hour.

Most consultancies will expect you to bill 70-95% of your 40 hours per week, depending upon the industry and your level of seniority. You should probably know what this goal is so that you can balance out non-billable tasks you still need to accomplish.

In 2022, starting base salaries for new MBA grads at the three firms was $175,000. Going into 2023, however, Bain and McKinsey will offer $192,000 base salaries and BCG will offer $190,000.

We offer gym membership subsidies and other proactive wellness programs.

The passing rate for the McKinsey Problem Solving Game is estimated at roughly 20-30%. As more candidates are invited to take the test, the proportion of those who pass is lower than the PST. Also, McKinsey uses the PSG for the recruitment of a wide range of candidates for various positions, not just consulting track.

In fact, the McKinsey recruitment process is considered one of the most competitive processes in the corporate world with just a ~1% acceptance rate.

How hard is it to get an offer from McKinsey? ›

Because of everything that McKinsey has to offer, McKinsey attracts the smartest people with the most impressive backgrounds. This makes McKinsey one of the most competitive consulting firms to get into. Less than 1% of people that apply to McKinsey will receive a job offer.

In 2023, MBA consulting salaries at the MBB firms start at $190,000 at BCG, and $192,000 at McKinsey and Bain, up from $175,000 last year. Performance bonuses have also increased with Bain now paying bonuses up to $63,000 and BCG up to $50,000. At McKinsey, the figure remains at $45,000.

Average Annual Salary (Estimated)

Assistant Vice President salary in McKinsey & Company ranges between ₹ 50.0 Lakhs to ₹ 140.0 Lakhs per year.

McKinsey Manager or McKinsey Engagement Manager Salary:

The range can run from $123,000-278,000. This is elevated by performance bonuses of up to $80,000 and profit-sharing opportunities of up to $30,000 a year. You typically reach this level after spending 3-6 years as an Associate.

A McKinsey associate principal salary sits at around $275-to-$350,000, while McKinsey partner salary prospects start at around $375,000 and go up to $500-to-$700,000 for a senior partner with potential bonuses of over $500,000.

At McKinsey, the salary for entry-level consultants (Analysts) ranges from $90,000 to $110,000 per year, while the figure for MBA-level/experienced Associates can go up to $233,000. Engagement Managers typically earn around $250,000, while Partners and Directors can earn up to $1,300,000.

While McKinsey and the other top firms are heavily represented by graduates of Ivy League universities (and their international counterparts), it is not staffed exclusively this way.

$278,610. The estimated total pay for a Junior Partner at McKinsey & Company is $278,610 per year.

The average McKinsey & Company salary ranges from approximately ₹2.4 Lakhs per year for a Office Assistant to ₹216.6 Lakhs per year for a Senior Partner. Salary estimates are based on 4.5k McKinsey & Company salaries received from various employees of McKinsey & Company.

McKinsey & Company

McKinsey MBA consultants earn $192,000 in base salary with performance bonuses of up to $45,000. McKinsey also offers 50% off second year MBA tuition for returning interns. A McKinsey consultant salary for master's graduates comes in at $112,000 with performance bonuses of up to $30,000.

What level is Partner at McKinsey? ›

That is correct, the traditional track at McKinsey from bottom to top is Analyst>Associate>Engagement Manager>Associate Partner>Partner. Moving from one position to the next normally takes 1 to 3 years. Each one of the previous role develops from Junior to Senior (e.g. from Junior analyst to Senior analyst).

Purdue Pharma settlement

It agreed to pay $8.3bn. Thousands of lawsuits against pharmacies, drug distributors and others are still pending.

The clients are often leading businesses (e.g., Fortune 1,000 companies like Coca-Cola and Microsoft), investors (e.g., Private Equity firms like KKR), governments (e.g., US Dept. of Energy) and nonprofits (e.g., Bill and Melinda Gates Foundation).

Those projects are really interesting to work on because you go really deep in 2 weeks on whatever you're doing but it's not a pace that you want to sustain for too long. Generally speaking though, it was usually a 60-70 hour working week.

When you travel, you can expect: Full reimbursem*nt for breakfast, lunch, and dinner – enough even to pay for room service meals at four-star hotels (where a glass of orange juice can cost $7)

Within MBB firms, McKinsey is the most prestigious and well-known, both inside and outside the industry. This is the result of their early and continuing success in maintaining extremely high standards in recruitment and project deliverables.

Some stay for two or three years before attending graduate school or gaining further work experience. Others are invited to stay at McKinsey and move directly into an associate role.

If you begin your career at McKinsey, you can expect to be elected to the first stage of a partnership in five to seven years. The greater your professional experience, the sooner you can reach this level. The most senior position at McKinsey, you might be elected director come seven years after you are made partner.

About 31% of the employees at McKinsey & Company work eight hours or less, while 25% of them have a very long day - longer than twelve hours. The Majority of McKinsey & Company employees are satisfied with their work life balance and feel burnt out.

Your consulting fees should be based on the value of your work. A number of factors influence that, including the scope of your work, your experience, and the competitive landscape.

How do you negotiate a higher consulting rate? ›

What is the highest-paid consultant job? The highest-paid consultant job is a senior management consultant. Senior Management Consultants earn an average salary of $128,259, which is $ 61.66 hourly.

But perhaps an even bigger driver is the paycheck that a Consultant takes home at the end of every month. So we know that the Consulting roles are some of the highest paid professionals in the corporate world, depending on their firm of employment as well as, to a certain extent, their respective alma maters.

Most PR professionals I've talked with agree that you need to bill for the time if a specific client requires the travel and prevents the consultant from serving other people.

On the other hand, if your billable utilization target is too low, you may not be producing enough billable work to meet your profit margins. Experts say ideal utilization rate for billable hours should be around 70-80%. This is where the company reaches the highest possible profit with an optimal hourly charge.

3:1 is a standard billing rate to salary ratio in consulting and other professional services firms. This standard is also known as the "rule of thirds", as the billing rate includes one-third salary, one-third overhead and one-third profit.

Billable hourly rate on the company level

You only need to divide the total company revenue by the total spent billable hours. For example, if your company makes $150.000 in a month, and you've spent 2500 billable hours in that month, the realistic hourly billable rate is $60.

Big 4 Firms

These are gigantic firms that have deep knowledge and skillsets, global footprints, and charge accordingly. Although Big 4 fees in the $90 to $160/hr range aren't unheard of, it's important to proceed with caution and be aware of the circ*mstances.

Forward, offered by McKinsey, is a free, six-month online learning journey that equips young talent with must-have practical skills to help them succeed in the future of work. It focuses on critical leadership, business, and digital skills that are relevant and transferable across industries and roles.

Is McKinsey subscription free? ›

All of our articles, multimedia, and other content are available free of charge at this site, where you can explore our latest thinking, review recent issues, and survey enduring insights on topics ranging from innovation and growth to change management.

Compensation and Perks

And the compensation and perks at McKinsey are definitely a considerable benefit to joining the Firm. Though you will have to put in the hours and earn your pay, you will enjoy an extremely competitive salary, excellent insurance, and industry-leading PTO.

Deloitte scored higher in 2 areas: Work-life balance and CEO Approval. McKinsey & Company scored higher in 7 areas: Overall Rating, Culture & Values, Diversity & Inclusion, Senior Management, Compensation & Benefits, Career Opportunities and Recommend to a friend. Both tied in 1 area: Positive Business Outlook.

The highest rates in consulting are charged by the Global Strategy Consulting Firms, such as McKinsey & Company (with roughly 17,000 employees the largest firm), Boston Consulting Group, Bain & Company, Strategy&, Roland Berger and A.T.

It receives hundreds of thousands of job applications which means chances are slim that your application will be successful. However, if you have an excellent academic record, and can prove you have strong communication and analytical skills, you just might make the cut. The hiring process at McKinsey is quite intense.

This is not required to get a McKinsey interview. Many people get McKinsey interviews without getting any referrals. Getting a McKinsey referral also does not guarantee that you will receive an interview.

One more perk: McKinsey pays 50% of MBA tuition for returning interns according to Management Consulted. That's not to say you won't find inventive recruiting strategies outside the MBB. Deloitte's Strategy & Operations practice reimburses second year MBA tuition for returning interns – as does ZS Associates.

Master's-level hires tend to come in at the McKinsey business analyst salary level while MBA hires come in at the McKinsey associate salary level. Two-to-three years out of an MBA program, McKinsey manager salary prospects are around $220-to-$240,000 in base salary and $100-to-$140,000 in bonuses.

Within MBB firms, McKinsey is the most prestigious and well-known, both inside and outside the industry. This is the result of their early and continuing success in maintaining extremely high standards in recruitment and project deliverables.

What is the average age of a McKinsey employee? ›

What is the average age of employees at McKinsey & Company Inc? The most common age range of McKinsey & Company Inc employees is 20-30 years. 48% of McKinsey & Company Inc employees are between the ages of 20-30 years.

The highest-paying job at McKinsey & Company is a Senior Partner with a salary of ₹216.6 Lakhs per year. The top 10% of employees earn more than ₹42.73 lakhs per year. The top 1% earn more than a whopping ₹118.78 lakhs per year.