by Asif Khan
Last year, I wrote a post about how much a Partner (Managing Director) at Accenture makes. It went on to become the most popular post on this site, by far.
I thought I would write a follow up article on the role that leads to Managing Director. Being a Senior Manager is a pretty great role since it exposes you to much of the responsibilities of a Managing Director without the actual accountability (ie sales quota)–and, to an extent, without the actual perks (ie the long term stock awards).
First, the usual disclaimers. I’m not revealing any proprietary information. The information presented here is from publicly available sources and some is based on my actual experience and anecdotal evidence from others in similar roles. As usual, I’m basing these numbers on a Technology Consulting role in the US because that is the role I was in most recently. Your mileage may vary.
First, let’s review the estimated pay structure leading up to the Senior Manager role:
An Analyst fresh out of college (a bachelor’s degree from an accredited institution is a minimum requirement to get hired by Accenture) or with a couple years of outside experience after college can expect to earn in the range of USD50K-USD100K.
A Consultant with 4-6 years post-college work experience can expect to earn a total compensation in the range of USD75K-USD125K.
A Manager with 6-10 years experience at Accenture can expect to earn a total compensation in the range of USD100K-USD175K.
Finally, a Senior Manager who has worked his/her way up at Accenture (or is an experienced hire joining Accenture at the Senior Manager level) can expect to earn a total compensation in the range of USD150K-USD300K.
These numbers are based on total compensation including performance and company bonuses (but not including stock grants which can add significantly to the total payout). I intentionally presented a wide range of pay for each level because there are several factors that can impact final pay. In general, an outside hire brought in at the Sr Manager level will make more money than someone who worked their way up from Analyst. Also, the firm makes exceptions for people with unique backgrounds. I referred a friend who was a VP of IT for a major financial services firm. I worked with a former physician (medical doctor) who worked in the HealthCare practice. I assume they were offered a compensation package at the very high end of the spectrum. Your pay can fluctuate greatly depending on your prior experience.
Now let’s drill into some of the factors that determine your total compensation.
The comp plan for Analysts and Consultants is pretty straightforward. You get a base salary and a bonus of around 5-10% based on your performance appraisal at the end of the performance year (which is about 3 months prior to the end of the fiscal year). The manager gets up to an additional 5% bonus based on how the company does. A Manager may also get some stock in the form of Restricted Stock Units. RSUs, unlike options, don’t have a strike price. You get the entire value of the shares but you can only cash it out after a specified period. At Accenture, the vesting period is 3 years, with one third vesting every 12 months (rather than 1/36th every month as I’ve had with previous employers).