2015 Strategy Consulting Compensation Study

January 30, 2015

Charles Aris, Inc. | Wells Fargo Tower | 300 N. Greene Street | Suite 1800 | Greensboro, NC 27401 | 336-378-1818

Compensation Data Key Facts

Charles Aris, Inc. is pleased to present our 2015 Strategy Consulting Compensation
Study. Key facts about the data compiled for the study are as follows:
All compensation data points for this study were collected between January 1, 2014 and
December 31, 2014. Its important to note that most firms raise base salaries for their
consultants in the December/January timeframe, and the most recent set of raises (i.e.
those that took place approximately one month ago) will not be reflected in this study. In
addition, one Big 3 firm provided an additional one-time special raise in October of 2014,
which effectively resulted in two raises during the calendar year. Given that we collect data
points throughout the year, only a small percentage of data points that reflect this special
increase will be incorporated in this study.
Most firms pay year-end bonuses in the December-January timeframe as well. The target
bonus percentages indicated at the top of each bar in slide four reflect what consultants
expected to receive at year-end and are not verified after the fact.
Compensation data points are self-reported by consultants and are not verified through any
other means. While this implies that consultants have the opportunity to be less than
honest about their compensation, we feel extremely confident that the data are accurate
given the consistency in responses we received across consultants and firms.
We eliminated a small percentage (less than 5%) of outlier data points that would have
adversely skewed the data. We also excluded Partner compensation data points from this
study. During the course of 2014 we spoke with many Partners with MBA graduation dates
in the range of our study, but their higher compensation dramatically skewed the data to a
point where it would no longer be useful for our clients.

2
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Input Data by Consulting Firm

100%

During the course of 2014, Charles Aris

recruiters spoke with over 3,500 strategy
candidates, of which over 99% were actively
employed with industry leading consulting
firms, corporations and private equity firms.

Detailed discussions around compensation

happen only on an as needed basis (once a
candidate expresses interest in moving
forward with an opportunity). For the
purpose of this study we have distilled only
those compensation data points from
candidates that were actively employed by
leading consulting firms.

Our 2015 Strategy Consulting Compensation

Study is driven by 621 data points from
consultants across nine firms.

63.3% of the data points come from The

Big Three firms: McKinsey & Company, The
Boston Consulting Group and Bain &
Company.

Of the 621 total data points, 379 come from

post-MBA consultants and 242 come from
pre-MBA/undergraduate consultants.

621 Total Data Points

Parthenon-EY^

L.E.K. Consulting

Oliver Wyman
A.T. Kearney

75%

Strategy&*
Monitor Deloitte

50%

Bain & Company

The Boston Consulting Group

25%
McKinsey & Company

0%
Input Data By Consulting Firm

*Formerly Booz & Co., now owned by PwC

^Formerly The Parthenon Group, now owned by EY

3
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Average Compensation by Graduation Year

Average 2014 Compensation* for Strategy Consultants by Graduation Year
$305,287

$300,000
$259,606

$250,000

$233,755
$214,640

$200,000

$193,791
$173,974

$150,000

$140,960
$117,147

$100,000

$85,670
$11,488

$50,000

$74,182
Salary

$95,500

$19,450

$12,840

$97,697
Salary

$82,660
Salary

$28,778
Bonus

$35,456
Bonus
$138,518
Salary

$43,133
Bonus
$150,658
Salary

$51,616
Bonus
$163,024
Salary

$64,599
Bonus

$169,157
Salary

$75,456
Bonus

$184,150
Salary

$270,443

$98,245
Bonus

$80,192
Bonus

$190,252
Salary

$207,042
Salary

$112,182
Salary

$0
2013
2012
2011
2010
Undergrad Undergrad Undergrad Undergrad
N=
Std Dev.** =
Median** =
% Change1yr^ =
% Change2yr^^ =

22
$4.9k
$85.9k
N/A
N/A

137
$16.5k
$91.8k
17.6%
N/A

61
$31.9k
$110.2k
30.5%
58.5%

22
$46.1k
$137.4k
23.8%
55.9%

2013
MBA

2012
MBA

2011
MBA

2010
MBA

2009
MBA

2008
MBA

2007
MBA

40
$13.0k
$170.2k
N/A
N/A

107
$30.5k
$185.6k
N/A
N/A

75
$26.9k
$212.9k
19.0%
N/A

63
$40.2k
$229.5k
15.1%
28.3%

40
$59.2k
$256.8k
14.7%
28.9%

28
$47.2k
$275.3k
5.2%
13.7%

26
$45.4k
$300.5k
14.0%
16.7%

*Base salary plus target annual bonus only. Does not include retirement contribution, profit sharing, sign-on, car allowance or other such cash equivalents.
**Standard Deviation and Median numbers are calculated for base salary plus target annual bonus, i.e. the number at the top of each column
Pre-Partner data points only, i.e. we excluded compensation data points from anyone at Partner level or equivalent as it skewed the data significantly.
^% Change1yr equals the percentage change in total annual compensation (base salary plus target annual bonus only), from 2013 to 2014, for that graduation year.
^^% Change2Yr equals the percentage change in total annual compensation (base salary plus target annual bonus only), from 2012 to 2014, for that graduation year.

4
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Average Increase in Annual Compensation

Post-MBA

Average Increase in Annual Compensation

Across All Post-MBA Graduation Years

The average post-MBA strategy consultant

experienced a 13.1% increase in
compensation in 2014, a noticeable increase
over the previous two years.

The stronger percentage increase relative to

previous years was driven by consulting firm
retention efforts, which was driven by an
increase in demand for strategy talent from
corporations, private equity firms and other
professional services firms.

30%
25%
20%

18.0%

15%
10%

13.1%

10.4%

9.2%

2012

2013

5%
0%

2011

2014

Pre-MBA/Undergraduate consultant
compensation grew by over twenty percent for
the third year in a row.

Pre-MBA

Average Increase in Annual Compensation

Across All Pre-MBA/Undergraduate Graduation Years

30%

The available supply of pre-MBA consultants is

less than post-MBAs, as pre-MBAs have a
wider set of opportunities, including attending
MBA school.
Corporations and private equity firms often
provide pre-MBA candidates with a double
digit raise upon recruiting them, and therefore
the consultantancies need to do the same to
retain these individuals.

25%
20%

24.1%

23.9%

24.1%

2012

2013

2014

17.9%

15%
10%
5%
0%

2011

5
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Trends in Compensation Expectations

During the course of 2014 Charles Aris, Inc. noticed the continuation of a trend in the marketplace:
consultants are expecting more in total compensation from Corporate America than what they are currently
making in consulting (and even more than what we saw in 2012 and 2013).

Consultant compensation expectations when joining Corporate America*

2009

2010

2011

2012

2013

2014

10-20%
LESS
than
consulting

BREAKEVEN
with
consulting

10-20%
MORE
than
consulting

5-10%
MORE
than
consulting

5-10%
MORE
than
consulting

10-20%
MORE
than
consulting

The continuation of multiple factors are behind this trend:

Most consulting firms remain effectively at capacity and therefore are paying strong salaries and
bonuses to retain talent.
Consulting firms that acquired a peer firm instituted retention bonuses, some of which will pay out
in 2015 and beyond, and consultants at those firms expect corporations to pay more to offset
those future payouts.
One Big 3 firm provided a one-time mid-year raise in 2014, which effectively resulted in two raises
during the calendar year, and at least one other firm has announced plans to follow suit in 2015.

Knowing that they are stepping off the steep compensation curve that consulting provides, consultants
strive to get out ahead of the curve so as not to lose their strong compensation position after only one
year of service in Corporate America.

With so many Corporate America opportunities competing for their services, consultants believe that
they have the luxury of saying no to any one opportunity with the expectation that another, higher
paying opportunity is right around the corner.

*Source: Charles Aris, Inc. anecdotal data.

Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

2014 Sample Industry Offers

Below you will find a subset of 2014 offers that were accepted by Charles Aris candidates from Tier 1 Strategy Firms.

Pre
MBA
Post
MBA

Education

Consulting
Firm

Consulting $$
(Base + Bonus%)

Industry Offer*

Offer Title

Company
Description

B.S. 2013

Top 9

$80k + 8%

$90k+14%

Strategy Manager

Corporation

B.S. 2012

Top 9

$83k + 40%

$100k+10%+$10kS

Senior Analyst

Corporation

B.S. 2012

Big 3

$90k + 35%

$100k+100%

Associate

Private Equity

B.S. 2011

Big 3

$97k + 29%

$135k+41%

Strategy Analyst

Hedge Fund

MBA 2012

Big 3

$145k + 30%

$160k+20%+$20kE

Sr. Manager

Corporation

MBA 2012

Big 3

$145k + 20%

$150k+20%+$20kS+$20kE

Sr. Manager

Corporation

MBA 2012

Big 3

$140k + 30%

$155k+25%+$20kS

Associate

Corporation

MBA 2012

Top 9

$165k + 40%

$165k+30%+$10kS+$50kE

Director

Corporation

MBA 2011

Top 9

$140k + 7%

$155k+25%+$16kS

Associate

Corporation

MBA 2010

Top 9

$180k + 35%

$200k+23%+$35kE

Director

Corporation

MBA 2009

Top 9

$160k + 45%

$170k+35%

AVP

Corporation

MBA 2009

Big 3

$210k + 40%

$200k+75%

Director

Hedge Fund

MBA 2008

Top 9

$150k + 17%

$175k+20%+$20kS

Sr. Manager

Corporation

MBA 2008

Top 9

Director

Corporation

MBA 2007

Big 3

Sr. Director

Corporation

$210k+5%+$13kE $190k+25%+$30kS+$57kE
$180k + 60%

$205k+35%+$40kS+$75kE

*First two numbers equal base salary plus target annual bonus (%). S=Sign-On bonus. E=Annual Equity Grant. Does not include other cash equivalents.
EXAMPLE: $160k+25%+$15kS+$40kE = Base Salary of $160k, Target Annual Bonus of 25%, Sign-On of $15k, Annual Equity Grant of $40k

7
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

2014 Offer Ranges by MBA Year

Below you will find 2014 corporate offer ranges*, at the 25th, 50th and 75th percentiles, for each Post-MBA
graduation year.

2012 MBA

25th

50th

75th

Title

Associate

Manager

Sr Manager

Base Salary

$135,000

$150,000

$165,000

Annual Bonus

10%

20%

30%

Annual Equity

$0

$0

Total Package

$148,500

2011 MBA

2009 MBA

25th

50th

75th

Title

Director

Sr Director

V.P.

Base Salary

$175,000

$185,000

$195,000

Annual Bonus

25%

30%

35%

$20,000

Annual Equity

$30,000

$45,000

$60,000

$180,000

$234,500

Total Package

$248,750

$285,500

$323,250

25th

50th

75th

2008 MBA

25th

50th

75th

Title

Manager

Sr Manager

Director

Title

Director

Sr Director

V.P.

Base Salary

$150,000

$165,000

$180,000

Base Salary

$180,000

$190,000

$200,000

Annual Bonus

15%

25%

35%

Annual Bonus

30%

35%

40%

Annual Equity

$0

$20,000

$40,000

Annual Equity

$35,000

$55,000

$75,000

Total Package

$172,500

$226,250

$283,000

Total Package

$269,000

$311,500

$355,000

2010 MBA

25th

50th

75th

2007 MBA

25th

50th

75th

Sr Manager

Director

Sr Director

Sr Director

V.P.

V.P.

$160,000

$175,000

$190,000

$190,000

$205,000

$220,000

Annual Bonus

20%

30%

35%

Annual Bonus

35%

45%

55%

Annual Equity

$20,000

$35,000

$50,000

Annual Equity

$50,000

$75,000

$100,000

Total Package

$212,000

$262,500

$306,500

Total Package

$306,500

$372,250

$441,000

Title
Base Salary

*Source: Charles Aris, Inc. anecdotal data.

Title
Base Salary

Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

2014 Offer Ranges by Undergraduate Year

Below you will find 2014 corporate offer ranges*, at the 25th, 50th and 75th percentiles, for each Pre-MBA/
Undergraduate graduation year.

2012 Pre-MBA

25th

50th

75th

Title

Analyst

Analyst

Sr Analyst

Base Salary

$80,000

$90,000

$100,000

Annual Bonus

5%

10%

15%

Annual Equity

$0

$0

$0

Total Package

$84,000

$99,000

$115,000

2011 Pre-MBA

25th

50th

75th

Title

Analyst

Sr Analyst

Associate

Base Salary

$90,000

$100,000

$110,000

Annual Bonus

10%

15%

20%

Annual Equity

$0

$0

$0

Total Package

$99,000

$115,000

$132,000

2010 Pre-MBA

*Source: Charles Aris, Inc. anecdotal data.

25th

50th

75th

Title

Sr Analyst

Associate

Sr Associate

Base Salary

$100,000

$110,000

$120,000

Annual Bonus

15%

20%

25%

Annual Equity

$0

$0

$15,000

Total Package

$115,000

$132,000

$165,000

Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Consultant Competencies
The matrix below defines the expected competencies for consultants at each level for the 2014 recruiting year.
Title at
Consulting
Firm*

Analyst

Years of
Experience
Current
Education

Associate

Manager

Principal

Partner

1-3 yrs
Pre-MBA

1-2 yrs
Post-MBA

3-4 yrs
Post-MBA

5-7 yrs
Post-MBA

8+ yrs
Post-MBA

2011-2013
undergraduate
degree

20132014 MBA

20112012 MBA

20082010 MBA

2007 and
earlier MBA

Breakdown of Consultant Competencies by Position

(Consultant Competencies defined on next slide)
100%
75%

Case Cracking
Project Mgmt.

Influence/Lead
Case Cracking
Project Mgmt.

Influencing/
Leading
Case Cracking

Selling/
Influencing/
Leading

50%
25%

Analytics/
Slide Building

Analytics/
Slide Building

Project Mgmt.
Analytics/Slides

Analyst

Associate

*Note that titles differ significantly by firm. These are

meant to serve as generic titles that work across all firms.

Manager

Selling/
Influencing/
Leading

Case Cracking
Case Cracking
Project Mgmt.

Project Mgmt.

Principal

Partner

10

Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Consultant Competency Definitions

Senior
Level
Competencies

Selling/
Influencing/
Leading

Generate revenue by selling consulting services.

Establish vision, frame key issues and set high
level strategy.
Influence key executives and stakeholders to
support significant change.

Case Cracking

Understand the problem at a more granular level

and establish a hypothesis driven approach
through which a solution can be derived.
Effectively, solve the problem.
Write the storyline.

Project
Management

Junior
Level
Competencies

Analytics/
Slide Building

Understand strategic direction as set by the

hypothesis driven approach, set milestones, scope
analysis, assign resources, manage execution and
report findings.
Serve as quality control lead.
Conduct quantitative analyses in a defect-free
manner. Possess mastery of Microsoft Excel.
Leverage Microsoft PowerPoint to create
impactful, concise, and defect-free slide loops.

11
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent

Charles Aris, Inc. Strategy Practice

Charles Aris, Inc. is a national executive search firm
that was founded in 1969. The Strategy & Business
Development division at Charles Aris is led by Chad
Oakley, a former Bain & Company consultant and
Wharton MBA.
Since its inception in 2003 the Strategy & Business
Development division has placed over three-hundred
candidates, at multiple levels, including Vice President,
Director, Manager and Analyst.
The division's client base falls into three categories:
the Corporate Strategy teams of industry leading
Fortune 500 companies, the investment and portfolio
management teams of leading Private Equity firms,
and professional services firms, including consultancies
and the like.
The candidates that we place typically work for top tier
strategy consulting firms and possess undergraduate
and graduate degrees from the world's leading
educational institutions.
For more information, please contact any of our team
members as shown on this page or visit
www.charlesaris.com.

Chad Oakley
President
336-378-1818 ext. 9101
chad.oakley@charlesaris.com

Jody Karavanic
Senior Practice Leader
336-378-1818 ext. 9104
jody.karavanic@charlesaris.com

Steven Stewart
Senior Practice Leader
336-378-1818 ext. 9114
steven.stewart@charlesaris.com

Caroline Wilson
Senior Practice Leader
336-378-1818 ext. 9120
caroline.wilson@charlesaris.com

Jillian Jitima
Project Manager
336-378-1818 ext. 9115
jillian.jitima@charlesaris.com

12
Copyright 2015
Charles Aris,
reserved.
to be
party
theutilized
prior consent
of Charles
Incorporated.
This information
is confidential
andIncorporated.
was preparedAll
byrights
Charles
Aris, IncNot
solely
forutilized
the usebyofany
ourthird
client;
it iswithout
not to be
by any third
party Aris,
without
our prior consent