Compensation
As a private firm, McKinsey is not required to disclose compensation figures. Unlike the financial services sector, consultants are not paid proportional to the business they bring in; top senior partners and the managing director have similar compensation. This was estimated to be $2–4 million in 1994 dollars ($3–5 million today), and has at least doubled ($6–12 million) today given the Firm's growth over the last 15 years. Other estimates place the managing director's compensation between $5 and 10 million.
Former managing director Rajat Gupta's McKinsey retirement salary the year after he retired from the firm was $6 million, followed by $2.5 million a year for at least the next three years (though the article does not specify if this applied to all top senior partners or only former managing directors.)
Junior directors were said to earn at least $1 million a year in 1994 dollars ($2 million in 2009). There were over 400 directors at the Firm in 2009, up from 150 in 1994.
A 1993 Fortune profile says, "The Firm places itself above discussing money as a motivation, yet senior partners often earn as much, or more, than the CEOs they advise", though over the last 15 years CEO compensation has increased disproportionately.
Read more about this topic: McKinsey & Company
Famous quotes containing the word compensation:
“Many old people receive pensions for no other reason, it seems to me, but as a compensation for having lived a long time ago.”
—Henry David Thoreau (1817–1862)
“The only compensation which war offers for its manifold mischiefs, is in the great personal qualities to which it gives scope and occasion.”
—Ralph Waldo Emerson (1803–1882)
“Senators and presidents have climbed so high with pain enough, not because they think the place specially agreeable, but as an apology for real worth, and to vindicate their manhood in our eyes. This conspicuous chair is their compensation to themselves for being of a poor, cold, hard nature.”
—Ralph Waldo Emerson (1803–1882)