Big 4 Hierarchy Structure – Levels And Salary

The hierarchy structure in Big 4 (PwC, Deloitte, EY, and KPMG) can confuse young professionals. This may stop them from setting realistic career goals when looking to start their career in any of these companies. 

Big 4 companies share the same hierarchical structure. It begins with associates (entry-level roles) and goes through more experienced positions like senior associates, manager, and senior manager. The top leadership role is the managing director and, finally, partner. 

Starting out as an associate at Big 4, you can expect to earn $90,000 to $120,000 annually. As you move up to the hierarchy, you’ll get a better package but with a whole lot of responsibilities.

In today’s read, I’ll tell you:

• What’s the Big 4 hierarchal structure?
• How much does each of the Big 4 companies pay to their employees?

Is the Hierarchy of Each of the Big 4 Firms the Same?

The Big 4 companies operate mainly in the accounting and consulting industry and follow the same standards set by IFRS, GAAP, and other regulatory bodies. (Source)

That’s the main reason these companies have a similar hierarchical structure. Below, I’ll explain it in detail for your better understanding. 

1. Associate

In Big 4, the associate serves in an entry-level role. (Source)

You get this position shortly after completing your undergraduate or graduate degrees in accounting, finance, or a related discipline (with limited experience). (Source)

Your responsibilities will include:

• Working on audit engagements.
• Conducting data analysis.
• Analyzing financial data, preparing reports, and documenting their findings.
• Collaborating closely with team members (including other associates and managers).

(Source)

Although the job responsibilities of an associate are pretty much the same in Big 4 firms, the salaries often vary (Mentioned in the table below).

(Source)

2. Senior Associate

After being an associate in Big 4 for 1 to 2 years, you’ll progress to the role of senior associate. The transition to this position means you’ll have a much greater part to play in the company. (Source)

To be precise, the following are a few of the job roles of a senior associate in a Big 4 firm:

• Provide audit and assurance services to clients in various industries.
• Analyze complex transactions and account balances.
• Supervise, train, and mentor associates.
• Prepare financial statements and related disclosures, etc.

(Source)

Now, let’s talk about the pay that you’ll receive as a senior associate in each of the Big 4 companies (See the table below).

(Source)

3. Manager

The next position in the Big 4 hierarchy is a manager (generally takes around 3 to 4 years from the start). (Source)

Getting such a significant role in the prestigious Big 4 firms may seem like a huge deal for your career. But it comes with a bag full of responsibilities that’ll include: 

• Participating in key decision-making processes related to project strategy, client services, and firm initiatives.
• Managing project budgets.
• Engaging in business development activities (such as client proposals).
• Supervising junior staff (either through a fixed team or on an assignment-by-assignment basis).
  

(Source)

Now let’s take a quick look at what you’ll earn in this role annually:

(Source)

4. Senior Manager

Following your tenure as a manager at Big 4 for 3 to 5 years, you’ll be all set to become a senior manager (another feather in your hat). (Source)

In this role, the weight of responsibility on your shoulders will grow! The firm will need you at your best all the time. That said, here are a few areas that you’ll cover:

• Identifying and addressing root causes of issues (not just symptoms).
• Balancing big-picture thinking with attention to detail.
• Anticipating stakeholder needs and discussing potential solutions proactively.
• Navigating the intricacies of global teams and engagements.

(Source)

I’m summarizing the salaries of this position at all of the Big 4 companies in the following table:

(Source)

5. Managing Director

Once you’ve performed great as a senior manager and maintained consistency, you’ll move up the ladder to become a managing director at Big (the one you’re working in). 

But let me tell you, it’s no easy feat, and it will take approximately a total of 5 to 7 years to pull this off! (Source)

This job demands a lot from you (requiring a high level of skill and dedication) in: 

• Winning substantial new business, often reaching targets as high as $3 million in a single year.
• Demonstrating a business owner mindset by creating and executing a detailed business plan.
• Communicating with clarity and impact (both internally and externally), etc.

(Source)

Also, this role is pretty much equivalent to the rank of a partner. The only difference is that you’ll not invest in ownership of the firm. (Source)

When it comes to the salary of the MD in the Big 4, it is quite rewarding, as you can see in the table below: 

(Source)

6. Partner 

After successfully and diligently serving in the Big 4 and transitioning through different roles for 10-15 years, you may have a chance to become a partner. 

But to be a partner, you’ll have to invest in the firm (known as a buy-in). (Source)

As a partner, you’ll be overlooking the following areas of the company:

• Managing potential risks associated with client engagements and firm operations.
• Representing the firm in the community and engaging in Corporate Social Responsibility initiatives.
• Playing a key role in achieving revenue growth targets for the company.

A partner in Big 4 doesn’t earn a fixed annual salary. Instead, their compensation is often structured as a share of the company’s profits. So, the more it earns, the more money you’ll get as a partner. (Source)

A PwC partner wrote on Glassdoor: “In my personal journey at PwC, the road to partnership was no easy thing to do, spanning eight years of hard work and dedication. Despite the challenges, I can confidently say that becoming a partner has brought immense joy and fulfillment to my professional life. This journey has been a testament to resilience and commitment, showcasing the rewarding outcomes that follow the demanding path to partnership within a prestigious firm like PwC.” (Source)