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Anonymous

on Feb 07, 2025

Global

Salary in IB vs Consulting

Hello,

I would be interested in the salary difference between IB and consulting. In which industry is it easier to get raises?

800+

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Top answer

Natalie

Coach

on Feb 07, 2025

Ex-Investment Banker | Former Deloitte & Grant Thornton | Coaching Finance Candidates to Ace Interviews & Land Top Roles

The salary gap between IB and Consulting is significant, especially at the junior levels. First-year analysts in IB typically earn a total compensation north of $150k (including bonus), whereas top-tier consulting firms usually offer around $100k–$120k, depending on your entry-level and experience The gap widens at higher levels due to IB’s aggressive bonus structure.

When it comes to raises, IB tends to offer bigger jumps but follows a more structured path. Promotions follow an analyst-to-associate timeline, and pay increases heavily depend on deal flow and performance. Consulting usually offers a steadier but slightly slower progression.

After all, it also really depends on the company you work for and it's hard to give a general answer on this question.

Binika

Coach

on Jun 21, 2025

9+ years in Finance, Consulting and Strategy, Corporate Development|Accenture| Coach Finance Candidates to Ace Interview

Hey!

In investment banking, starting salaries tend to be higher than in consulting, especially when you factor in bonuses. The pay in banking is often more directly tied to deal flow and firm performance, which can mean bigger spikes during strong years. Consulting salaries usually start a bit lower but tend to grow steadily and predictably with promotions and performance reviews. Consulting firms also often emphasize structured career progression and clear timelines for raises and bonuses.

When it comes to getting raises, consulting might offer more consistent and transparent increases as you move up the ladder, with well-defined promotion cycles.

In banking, raises can be less predictable and more dependent on the firm’s profits and your individual contributions during deal cycles. Both industries reward high performers, but banking can be more volatile while consulting provides steadier growth. Your choice might come down to whether you prefer a potentially higher but fluctuating income or a more stable and predictable path.

PrepLounge

on Feb 07, 2025

Hey there,

Thank you for your question and welcome to the PrepLounge Community!

Maybe our following articles on salaries in investment banking and consulting may be helpful to you:

? Salaries in Investment Banking
? Salaries in Consulting

In the articles, we also provide links to further content on regional salary differences, so we hope this can answer your question more specifically.

Enjoy your time on PrepLounge and let us know if you have any feedback.