Consulting Firms Pay $25,000 - $600,000+

Compensation in Consulting Firms, 11th Edition - 2006
Survey Summary

PUBLISHED: April 2006 Table of Contents | Sample Report Page

Salary Survey Software 5,700 Jobs and 1,200 Industries

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Summary of the 88-page Compensation in Consulting Firms, 11th Edition survey report of 11 benchmark jobs from Abbott, Langer Association Surveys. The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 8 more benchmark jobs, and the factors affecting salary (Geographic Area, Type of Service Provided by Employer, Annual Fees, Number of Employees, Type of Work Performed/Supervised/Directed, Experience, Education, Experience Versus Education, and Managerial/Supervisory Responsibility):

The composite highest-income practitioner in this field (salary plus cash bonus and/or cash profit sharing) is the President "A" of a consulting firm (defined as a chief executive officer who is the owner of or a full partner or major stockholder in the firm). The firm provides consulting services in organizational design/structure/control strategy, training & development, government, or information technology; receives in excess of $2,500,000 in gross annual fees; has 10 or more employees; and is headquartered in or near Omaha, St. Louis, San Diego, Boston, New York City, or Milwaukee, or outside the metropolitan areas studied in South Dakota or South Carolina. This individual typically has an undergraduate or graduate degree and 25 or more years of experience. While President "A"s have a median total annual income of $200,000, the highest-income individuals reported in this group make over $600,000.

At the far end of the income spectrum (excluding clerical employees), Research Associates have a median income of $38,418. Earning as low as $25,000, the lowest-paid employees in this group usually are employed by firms providing consulting services in information technology or multiple specialties; are headquartered in or near Milwaukee, Boston, or Oklahoma City, or outside the metropolitan areas studied in California or Virginia; and usually have an A.A. or bachelor's degree, under five years of experience, and little or no supervisory responsibility.

These composites represent the briefest possible "boil-down" of the voluminous data provided regarding current salaries and cash bonuses and/or profit sharing, and numerous demographic variables provided by 32 consulting firms regarding on over 1,900 employees in 11 benchmark jobs. The end results of the survey appear in Compensation in Consulting Firms, 11th Edition - 2006, an 88-page statistical analysis of compensation in this field. Copies of the report are available for $995.00 through our On-Line Order Form or from Abbott, Langer Association Surveys, 1725 I Street NW, Suite 300, Washington, DC 20006 (Telephone: (877) 210-6563, Fax: (877) 239-2457).

In addition to the incomes of the benchmark jobs already discussed, the median total cash compensation nationally for some of the other nine benchmark jobs included in the survey report is:

Senior or Executive Vice Presidents	$155,000
Vice Presidents	$140,005
Branch Managers "C" (supervises 10-24 consultants)	$123,600
Chief Financial Executives	$96,000
Principal Consultants	$82,618
Senior Consultants	$80,500
Consultants	$58,240
Junior Consultants	$46,010

Naturally, these nation-wide pay rates vary by region, state & metropolitan area, type of services provided and annual fees received by the firm, size of firm, type of work performed/supervised/managed, level of education, length of experience, and supervisory/managerial responsibility involved - all demographic variables for which data are provided in the complete report.

Geographic Area

The median total annual cash compensation for supervisory/managerial personnel is highest in the southwestern and northeastern states, and lowest in the north central and midwestern states. The Rocky Mountain, southern, and Pacific states fall in the middle of the range. Regarding metropolitan areas alone, the highest median annual incomes reported are found in or near Dallas/Ft. Worth, Philadelphia, San Diego, Chicago, San Francisco/Oakland, St. Louis, and Phoenix. The lowest median annual incomes are found in or near Omaha, Cleveland, Dayton, Kansas City, and Charlotte (NC).

Median total annual cash compensation for consultants is highest among those located in the southwestern and Rocky Mountain states, and lowest in the north central and midwestern states. The southern, Pacific, and northeastern states fall in the middle. Regarding metropolitan areas alone, the highest median annual incomes are found in or near Philadelphia, Dallas/Ft. Worth, Atlanta, Washington (DC), Denver/Colorado Springs, and Columbus (OH). The lowest median annual incomes are found in or near Omaha, Milwaukee, Oklahoma City, Seattle/Everett, Boston, and Houston.

Type of Service Provided by Employer

Overall, supervisory/managerial staff are paid best in consulting firms specializing in employee compensation/benefits and information technology. It is lowest in consulting firms specializing in sales/marketing and those with multiple specialties.

For consultants, the highest compensation is found in information technology and human resources consulting firms. It is lowest in sales/marketing and employee compensation/benefits consulting firms.

Annual Fees

This factor is only a moderate predictor of the median total annual cash compensation received by both supervisory/managerial personnel and consultants. Supervisory/managerial personnel are paid most when the firm's annual fees are $5,000,000 to $24,999,999; consultants are paid best when the firm's annual fees are $2,500,000 to $4,999,999. Both supervisory/managerial personnel and consultants are paid least when fees are under $2,500,000.

Total Number of Employees

This factor is not a good predictor of median total cash compensation for either supervisory/managerial personnel or consultants.

Type of Work Performed/Supervised/Directed

For supervisory/managerial personnel, median total annual cash compensation is highest when the type of work performed/supervised/directed is in organization design/structure/control, training & development, and management strategy consulting. It is lowest in purchasing, sales/marketing, government, and information technology consulting.

For consultants, management strategy, sales/marketing, economic forecasting, and information technology consulting result in the highest median total annual cash compensation, while telecommunications, market research, and financial strategy consulting result in the lowest.

Experience

This is a fairly good predictor of median total annual cash compensation for both consultants and supervisory/managerial employees.

Education

This factor is a good indicator of total annual cash compensation. Supervisory/managerial personnel with an MBA and MA/MS degree, for example, were the highest paid ($200,000 -- the MBA degree was close behind at $165,700), 60% higher than such personnel with less than a BA/BS/BBA degree ($125,000).

Consultants with an MBA degree received $103,287 in total annual compensation, 62% higher than consultants with less than a BA/BS/BBA degree ($63,731).

Experience Versus Education

A combination of experience and education is a better predictor of compensation than either area alone. While dealt with in detail in the report, space does not allow an analysis of the data herein.

Managerial/Supervisory Responsibility

Median total annual cash compensation varies greatly according to the level of supervisory responsibility. Compensation is highest for supervisory/managerial staff who supervise 50 or more professional and sub-professional employees ($221,000), 130% higher than those who supervise only one or two sub-professionals ($96,000).

For consultants, compensation is highest with supervisory responsibility for five to nine professional employees ($130,958) and lowest with no supervisory responsibility ($67,475), a difference of 94%.

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Buy the 88-page survey report, Compensation in Consulting Firms, 11th Edition - 2006, described on this page for $995, with charges for shipping & handling. The report is IN STOCK and can be shipped out within two business days. The mean, median, 1st and 3rd quartile, and 1st and 9th decile data for base salary, bonus/commission/profit sharing, and total annual cash compensation are reported for many demographic variables, including education, experience, geographic location, type and size of employer, etc. To purchase the report, use our On-Line Order Form, call (877) 210-6563, , fax, or write per the information at the bottom of this page.

Following are the 32 organizations that supplied current compensation and demographic information for the survey report.

• Alliance Data Systems, UTS - Consulting Services division
• Astron Solutions
• Boston Biomedical Consultants
• Broderick & Company
• Business Management Research Associates
• CALIBRE Systems, Inc.
• Carter-Goble Associates, Inc.
• Colarelli, Meyer & Associates, Inc.
• CompAnalysis, Inc.
• Compensation Resources, Inc.
• Ebert & Sebastian, Inc.
• Epler Company
• Fortune Consulting
• Hagar & Associates
• Hyde & Lichter, Inc.
• ICF Consulting Group, Inc.
• Independent School Management, Inc.
• J. W. Morton & Associates, Inc.
• Ken Blanchard Companies
• Lerch, Bates and Associates, Inc., Elevator Consulting Group
• Mattson Jack Group
• Midior Consulting, Inc.
• Penny/Ohlmann/Neiman, Inc.
• Practice Management Springfield, Ltd.
• Project and Construction Services, Inc.
• RSM McGladrey
• Sequent, Inc.
• SilverStone Group, Inc.
• Spader Business Management
• State Street Consultants
• Think Global Technologies, Inc.
• Zaiss & Company