Management consulting is a cash business. Now salaries and bonuses within the consulting industry are certainly not at the stratospheric levels enjoyed by their kindred brethren in investment banking. But consultants generally do realize much-better-than-average wages relative to their counterparts in the corporate world.
This maxim becomes clear when one analyzes compensation trends for varying staff levels within the industry.
Kennedy has been benchmarking compensation rates for the better part of the last two decades. What generally holds true is that when times are good, consultants do well. And when times are bad, consultants do … not so bad.
Contrary to the phenomenon that occurs at many of the companies they advise, during down times, consulting firms tend to tighten belts among its more senior ranks while protecting earnings for its junior members.
Now before getting misty-eyed and believing partners share a secret benevolence to assist the proletariat, there's a method to their madness. Sharing the wealth is a cultural underpinning to virtually every successful consultancy.
