I wonder why people in banking earn on average twice those in consulting. And im not considering extremes like investment banking or private equity. It seems though, although charging slightly more, the margins are competitive. Then why does 5 years experience in strategy consulting pay 80k at the very very top and the same experience in corporate finance / investment management / corporate broking / corporate banking pay circa 120-150 ( including bonus)why dont we get a bigger slice of the pie!?!?!?

Fees in banking are not 'slightly' more, they are grotesquely more. Moreover, although hours can be similar, the pressure in banking and investment banking is on the whole more than that in consulting. A bad job/call in consulting may lose you a client, a bad call in banking or investment banking can lose you multi multi millions. In addition, a consultant if 100% utlisied can make a credible amount of fees for employer but will never match the millions and millions bankers make for their companies! I still feel though we get a rough deal!!!

The income distribution isn't very equitable in consulting, it's true. We are expected to earn about £250k of fees. This isn't all that different to some areas of investment banking. The model is though that the profits do not get distributed but go to the partners - we only get 20%. I have worked in other professional services where this is not the case. Small wonder that profits are 40%+ - what an outrageous rip off - what other industry has such greedily high profits or so tenuous a link between cost and price?

You lot see youselves on a par with bankers.......they are in reality F1 comnpared to your drag car racing.......consulting is not an elite career......

Consultants are Scalextric cars, Bankers are Hornby trains, but Herbal (Natural) Therapists are the real machines - 100% Ferrari Enzo (LPG conversion)

Accountability plays a significant part here (rates not toy trains). For instance if someone working in supply chain for some FMCG (say, example cigarettes) saves 5p per pack on the total cost of production - do you think they'll see any proportion of that saving in their salary. Course not. That you can bill alot of hours is irrelevant concerning your pay, just realise that the only way yot fix this is to go and start-up on your todd and get used to being that toy car(?).

ha! youre a silly man a silly man. firstly, the skills in strategy consulting are far more unique and complex than any excel modelling investment bankers ( i wont even assume you mean retail banking). Secondly, your analogy of motorsports proves youre ignorance: drag cars are superiorly faster than F1 cars. Better luck next time...

George - can you kindly elaborate on what you think the skill differences are exactly and why the 'market' pays differently, if you believe strat consultants are more skilled yet paid less?Thanks.

Wasn't Wayne's medical specialist a Professor and not a Doctor?

It is not a question of having more skills in volume - its that strategy consultants posses more UNIQUE skills than investment bankers. They have to have strong analytical skills AND rely on creativity, style, persuasiveness, adaptability etc etc. A good strategist can analyse a situation and break it down in seconds (there is a good book that explains how Napoleon used to do it).Salary and profits generated by the company make no difference at all in valuing who is most unique: im sure you realize an oxford professor makes less than a plumber - dont tell me the plumber has more 'skills'? Money isnt everything when it comes to intellectual challenges - and if you ask me, advising a government on thier domestic strategy, or creating a market entry plan for ftse 10 is more demanding mentally than producing a DCF model in half the normal time it should take. .Lastly, there are very very few strat consultants in the world - even if you look at Mckinsey, 70% of their work is operational. There are far more bankers doing thier valuations, comparables and M&A transactions - which is a very high skilled, yet REPETITIVE METHODOLOGY. In short - its much harder to find people that are good at strat consulting. Find a Mckinsian and have dinner with him. then do the same from one from Goldman's. Im sure the difference will be clear from the start.

Well George, that's all fine and dandy. In principal your comment that "Money isn't everything" is true if a little hackneyed, but for me it comes down to one simple fact - consulting = 6 figure salary, banking, 7 = figure salary. That differential is all that matters...

Let this be a lesson to you all……the trawler trails the seagulls and throws the fish………ZZzzzzzzzzz