How much will you earn if you jettison your job in a City of London investment bank and go to work for consulting firm McKinsey & Co. instead? McKinsey's UK accounts, just filed for the year ending December 2017, offer some pointers.
McKinsey spent around £320m ($411m) on UK personnel costs last year. Although the firm doesn't disclose UK employee numbers in its accounts, insiders say it has around 1,000 employees in the country. The implication, therefore, is that McKinsey paid its average employee £320k ($411k) for 2017.
This would make working for McKinsey a lucrative option, although it's worth nothing that the accounts suggest that pay for an unspecified group of "senior managers' accounted for £126m of the £320m wage bill. Rival consulting firm BCG Partners pays its average non-partner UK employee £90k and its average UK partner £967k for 2017. Pay is likely to be divided similarly at McKinsey & Co.
McKinsey & Co. Inc UK spent around 45% of its revenues on paying staff last year. Revenues at the business rose 18% to £582m. Profit before tax was a slender £2.7m, but this was wiped out by a deferred tax bill which meant McKinsey's UK operation made a loss of nearly £200k last year (although this was an improvement on a loss of nearly £10m the year before).
If you don't mind working for the unprofitable UK arm of a global consulting firm, McKinsey clearly has things to recommend it (the pay). However, if money is your prerogative you might also want to stay in banking. - Goldman Sachs International paid its average UK employee nearly £400k for 2017. And it made a profit.
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