Salary in IB vs Consulting

Question

Hello,

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

Answer 1

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.

Answer 2

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.

Answer 3

Having worked in both investment banking and consulting, I can say the working hours are definitely intense in both w... (read entire answer)

Having worked in both investment banking and consulting, I can say the working hours are definitely intense in both with some differences. In investment banking, expect to work... (read entire answer)