By Michael Cohen
Management consultants are highly paid because the marketplace values them so. The question is why this is so. In no particular order:
- Management consulting clients are usually big organizations- in companies and Government agencies. They can afford to pay high fees, and support high income for consultants, whereas small clients such as individuals and small companies are less able to.
- Management consultants usually deal with big issues. This usually involves large dollar investments, expenses, revenues, profits, large numbers of people, organizational structures, strategies or implementation concerns in companies; and similar issues and policy or program decisions in the public sector.
- Management consulting is a fairly risky profession. Consulting firms have to continually sell business to fund the salaries, benefits and perks of their employees. It is a competitive business and several of the larger consulting firms have an up or out policy. The more risk, the greater the reward, i.e., salary.
- Management consulting is a demanding profession, with long hours and, in many consulting firms, a lot of travel. Firms have to pay good salaries to attract people to this life style.
- Management consulting issues are complex and usually require people with advanced degrees. The better consulting firms usually seek people from the top MBA programs. They have to offer good salaries to attract the better people.
Source: Quora.