5 ms·

It is not uncommon for people in technology to be making $500k-$1m annually by 30, and the lifestyle is much better if you have outside commitments.

wayoutthere 6y ago
Consulting in particular really depends on the company. The big 4 will grind you to the bone, but boutiques often pay better and have much more reasonable expectations of time commitment. I don’t see consulting ever going back to the weekly travel model, and during the pandemic I work maybe 30 hours a week while pulling in the salary I do. Most of my work involves going to meetings, understanding complex business architecture and providing advice around niche topics while working within the politics of a various org. Pulling in a salary+bonus in this range with very little risk on my part.
- emteycz 6y ago
  How would a software engineer/previously small startup 'CTO' get into consulting like this?
  - wayoutthere 6y ago
    I know this is gonna sound corny, but apply for jobs at any of the big 4 to learn the industry, and after a couple years you’ll know the companies you want to work for and have connections through co-workers who have left. Consulting is all about politics and connections, so thinking those aren’t directly correlated to wealth is naive.
    - shuckles 6y ago
      Do you see this industry loosening its expectations for an MBA? That is nearly $1m of opportunity cost to some of the technologists who might be interested in growing a management consulting career.
      - ativzzz 6y ago
        A good MBA program will help you develop those exact connections the parent comment mentions
        shuckles 6y ago
        My experience has been that it’s a lot more gatekeeping than networking to the extent that I’ve seen banks move away from requiring it.
        ativzzz 6y ago
        As with anything, it is what you make of it. HN has a stereotype of MBA students that doesn't always hold up to the real world (though not all stereotypes are wrong).
        shuckles 6y ago
        Help me understand why MBA graduates placing into technology companies as, eg, PMs see little leveling benefits for their efforts versus graduates from the same schools placing at consulting firms? Is the network really that much more essential to a consulting career than a PM career? And is the hours-adjusted total income of a consulting career that much better for wealth building than an extra million bucks pre-tax at age 30?
        wayoutthere 6y ago
        > Is the network really that much more essential to a consulting career than a PM career? Yes. I sell projects to my former classmates all the time, and if I ever find myself out of a job, I could have a half dozen interviews within a month. The network is absolutely amazing if you go to one of the top 20 or so schools and have some people skills. You can't really make use of the network if you're a PM. > And is the hours-adjusted total income of a consulting career that much better for wealth building than an extra million bucks pre-tax at age 30? Lifetime income for a partner at a consulting company can easily top $30 million -- with the benefit of being able to blow the escape hatch and land in a VP role in industry if you burn out on the consulting work.
formercoder 6y ago
You’re making a big bet on equity appreciation though. That’s how the vast majority of very highly paid folks in tech make their money. The consulting jobs pay it in cash.
- lotsofpulp 6y ago
  It's not worth the hit to quality of life, in my opinion. It's much easier to plan trips or visit with my friends in tech than the ones in finance. Live to work vs work to live scenario.
- vikinghckr 6y ago
  FANG equities don't require making any "bets". They're as good as cash.
  - est31 6y ago
    FANG equities won't dissolve into thin air from one day to another unlike startup equities, and you get hard RSUs instead of options from an "option pool" that's arbitrarily diluted, but do you know how many percent your FANG equity will increase in value by the time it's vested? That's the bet you are doing. It's not a rigged bet, plenty of people were quite happy this year by the TINA craze buyers pushing tech stock, but it's still a bet.
    - username90 6y ago
      You don't need luck though, even with no stock appreciation at all you make over $300k a year as a senior engineer at Google. The high salaries you see are mostly without extreme stock value changes.
      - est31 6y ago
        > without extreme stock value changes. That's the point, you don't know whether there will be any. So they are definitely not "as good as cash". Just because they aren't lottery tickets doesn't mean they are equivalent to cash.
thatindiandude 6y ago
Are you assuming you make L6 IC/Manager by 30? Realistic, but not everyone does it.
- shuckles 6y ago
  The type of person who makes partner at Bain / BCG / McKinsey or their botique equivalents can definitely have that kind of trajectory in a technology company.
sidlls 6y ago
It's extremely uncommon, actually, outside of FAANG. I wouldn't say it's uncommon in FAANG, but it also isn't commonplace enough to be completely unremarkable.
eganp 6y ago
How much of this compensation is equity appreciation? Is it realistic to expect this 10 years from now? Not like interest rates can get lower or search could get less competitive.

wayoutthere 6y ago

Consulting in particular really depends on the company. The big 4 will grind you to the bone, but boutiques often pay better and have much more reasonable expectations of time commitment. I don’t see consulting ever going back to the weekly travel model, and during the pandemic I work maybe 30 hours a week while pulling in the salary I do. Most of my work involves going to meetings, understanding complex business architecture and providing advice around niche topics while working within the politics of a various org. Pulling in a salary+bonus in this range with very little risk on my part.

emteycz 6y ago
How would a software engineer/previously small startup 'CTO' get into consulting like this?
- wayoutthere 6y ago
  I know this is gonna sound corny, but apply for jobs at any of the big 4 to learn the industry, and after a couple years you’ll know the companies you want to work for and have connections through co-workers who have left. Consulting is all about politics and connections, so thinking those aren’t directly correlated to wealth is naive.
  - shuckles 6y ago
    Do you see this industry loosening its expectations for an MBA? That is nearly $1m of opportunity cost to some of the technologists who might be interested in growing a management consulting career.
    - ativzzz 6y ago
      A good MBA program will help you develop those exact connections the parent comment mentions
      - shuckles 6y ago
        My experience has been that it’s a lot more gatekeeping than networking to the extent that I’ve seen banks move away from requiring it.
        ativzzz 6y ago
        As with anything, it is what you make of it. HN has a stereotype of MBA students that doesn't always hold up to the real world (though not all stereotypes are wrong).
        shuckles 6y ago
        Help me understand why MBA graduates placing into technology companies as, eg, PMs see little leveling benefits for their efforts versus graduates from the same schools placing at consulting firms? Is the network really that much more essential to a consulting career than a PM career? And is the hours-adjusted total income of a consulting career that much better for wealth building than an extra million bucks pre-tax at age 30?
        wayoutthere 6y ago
        > Is the network really that much more essential to a consulting career than a PM career? Yes. I sell projects to my former classmates all the time, and if I ever find myself out of a job, I could have a half dozen interviews within a month. The network is absolutely amazing if you go to one of the top 20 or so schools and have some people skills. You can't really make use of the network if you're a PM. > And is the hours-adjusted total income of a consulting career that much better for wealth building than an extra million bucks pre-tax at age 30? Lifetime income for a partner at a consulting company can easily top $30 million -- with the benefit of being able to blow the escape hatch and land in a VP role in industry if you burn out on the consulting work.

formercoder 6y ago

You’re making a big bet on equity appreciation though. That’s how the vast majority of very highly paid folks in tech make their money. The consulting jobs pay it in cash.

lotsofpulp 6y ago
It's not worth the hit to quality of life, in my opinion. It's much easier to plan trips or visit with my friends in tech than the ones in finance. Live to work vs work to live scenario.
vikinghckr 6y ago
FANG equities don't require making any "bets". They're as good as cash.
- est31 6y ago
  FANG equities won't dissolve into thin air from one day to another unlike startup equities, and you get hard RSUs instead of options from an "option pool" that's arbitrarily diluted, but do you know how many percent your FANG equity will increase in value by the time it's vested? That's the bet you are doing. It's not a rigged bet, plenty of people were quite happy this year by the TINA craze buyers pushing tech stock, but it's still a bet.
  - username90 6y ago
    You don't need luck though, even with no stock appreciation at all you make over $300k a year as a senior engineer at Google. The high salaries you see are mostly without extreme stock value changes.
    - est31 6y ago
      > without extreme stock value changes. That's the point, you don't know whether there will be any. So they are definitely not "as good as cash". Just because they aren't lottery tickets doesn't mean they are equivalent to cash.

thatindiandude 6y ago

Are you assuming you make L6 IC/Manager by 30? Realistic, but not everyone does it.

shuckles 6y ago
The type of person who makes partner at Bain / BCG / McKinsey or their botique equivalents can definitely have that kind of trajectory in a technology company.

sidlls 6y ago

It's extremely uncommon, actually, outside of FAANG. I wouldn't say it's uncommon in FAANG, but it also isn't commonplace enough to be completely unremarkable.

eganp 6y ago

How much of this compensation is equity appreciation? Is it realistic to expect this 10 years from now? Not like interest rates can get lower or search could get less competitive.