After receiving their MBB offers, or mentees often ask:
"How will the salary develop throughout my tenure? Will I get yearly pay rises, or only upon promotion?"
The answer to this is - it differs!
Salary progression differs across firms and regions. But as a general observation, at McKinsey, contrary to BCG, there is a historic structure of giving yearly salary raises within a certain seniority level, based on performance rating. At BCG however, the salary has been traditionally flat throughout a specific seniority level.
So as a consequence, McKinsey pay tends to start at par or even a little bit lower, and then rises beyond the salary level of BCG. Then BCG pay catches up (or exceeds) upon the next promotion.
It also means that the salary jumps from one career level to the other are bigger at BCG.
On the more senior career levels (AP/Principal and upwards), McKinsey salary structurally rises beyond BCG and Bain salaries in most markets (especially driven by the part that depends on Firm performance, which was really high over the last 10 years or so).
P.S.: In some regions, BCG has also recently shifted towards a model of yearly salary increases. And Bain SEA is giving year on year increments on their salaries as well nowadays.