<p>Because the facts are greatly greatly misleading. The SALARIES of consulting and banking are roughly equivalent. In fact, the salaries of consulting are probably slightly better than the banking salaries. The major difference is that the BONUSES of banking are far far higher. This is particularly so as you get into the upper ranks of banking, where the salary you get as a banker becomes inconsequential because you make almost all of your money off the year-end bonus. </p>
<p>At the upper levels, there is no comparison between the pay packages of banking vs. consulting. For example, a consulting partner, which is the highest level you can attain in consulting, might make 7 figures a year in total pay. But that kind of pay can be surpassed by even a mid-level banker such as a vice president. If you can make MD or partner in a bank, then you are easily pulling in 8 figures, maybe even 9 figures. </p>
<p>The problem with bonuses is that nobody ever really knows what they are going to get. It depends on the general economy, on the value of the deals you have worked on, and a wide variety of other factors. For example, a managing director of a bank might make “only” 600k in salary - but could easily make $25million in bonus. Very very few consultants can ever make that kind of money. In fact, this is why so many consultants eventually jump ship to a normal company - because at the upper management ranks, you can almost always make more money as an upper manager at a normal company than you can as a consultant. For example, Larry Ellison was able to coax Ray Lane into resigning his partnership position at Booz Allen Hamilton and to become President and COO of Oracle in a very simple way - through lots of money, in the form of a big dollop of Oracle stock options. </p>
<p>But hey, don’t take my word for it. Read about it yourself, and then you tell me what the facts say.</p>
<p><a href=“http://newyorkmetro.com/nymetro/news/bizfinance/biz/features/15197/index3.html[/url]”>http://newyorkmetro.com/nymetro/news/bizfinance/biz/features/15197/index3.html</a>
<a href=“http://www.careers-in-business.com/consulting/mcsal.htm[/url]”>http://www.careers-in-business.com/consulting/mcsal.htm</a>
<a href=“http://www.careers-in-finance.com/ibsal.htm[/url]”>http://www.careers-in-finance.com/ibsal.htm</a></p>