Common to take pay cut to join corporate strategy role at manager level?

Hi,

Sharing my experience having interviewed/shopped around for options at Consultant, Project Leader and Principal level. 

My benchmark is based in Singapore / SEA, so YMMV depending on your specific region, but here are some very ballpark general trends I observed:

• SG/SEA Big corporate (F500 type): goes down to -20% less than PL; i've received offers that match
• SG/SEA Finance (Big Banks): match PL level
• SG/SEA Tech (pre-Covid): match if not sometimes +20% bump especially at Consultant/PL level
• China Tech/Gaming: pretty insane total comps sometimes exceeding Principal salary

Of course, for many of these companies the total comp includes RSUs that will take a couple of years to vest. 

Long story short - I think matching PL salary is doable for ‘richer’ industries, but expect to cap out at a certain level in industry (probably around Senior Principal equivalent max). 

Hi there,

Q: Common to take pay cut to join corporate strategy role at manager level?

It really depends on the role/industry, but for some roles, yes, you might have to accept a lower salary. If you have multiple offers though you might be able to negotiate it a bit.

Best,

Francesco

Yes, in general you will take a pay cut in your base pay when you leave. Even if you leave as an experienced senior consultant to a manager level role.

This being the general answer doesn't mean it will always apply. It also depends on how much of an expert you are vs. a generalist and the role you are able to get.

One final piece of advice: always leave for a manager level role if you can. Moving from analyst level to manager is not always easy, and if you stay one extra year in consulting to get to that level it is much better than leaving and then having to wait 2-3 years (or more) to move up. And by being a manager I mean actually managing people.

Hello!

Yes, in some geographies it's actually pretty common for consultants to take a pay cut when switching from consulting to industry.

The best exits from MBB are from the post-MBA positions, such as Consultant / Associate or a Project Leader / Engagement Manager, with the managerial role considered the sweet spot to exit management consulting.

Oftentimes consultants would switch for the same (or slightly lesser) salary but for a substantially better work-life balance. This is the trade-off.

Regards,
Nick 

Hi there!

Most people try and transfer at the same level of compensation. 

It rarely happens that they get more. 

And in some cases, indeed, they get less. 

The check that I would make if I were you is how specifically it looks like in your region. Reach out to your network and have a chat with them and try to understand what was the range of offers they received. 

If that's just how things work out in that market it's unlikely you'll be able to negotiate the compensation significantly. 

Best,
Cristian

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Hi there,

Love Ben's response here.

He's pretty much nailed it: It depends

Personally, I took a paycut. I know of many who took paycuts but I also know of a few who got raises (one colleague landed an exec role that increased his pay by 50%!)

In general, I agree, you should “expect” a paycut, but it's not always a given.