A career at Ernst & Young (EY), one of the prestigious "Big Four" accounting and professional services firms, is a well-recognized launchpad for a successful career in business, finance, and consulting. Beyond the invaluable experience and networking opportunities, EY offers competitive compensation packages designed to attract and retain top talent. For aspiring professionals, understanding the salary landscape at EY is a critical step in career planning.
Salaries at EY are highly structured, with compensation typically ranging from approximately $70,000 for entry-level associates to well over $200,000 for senior managers, with partners and principals earning significantly more. This guide will break down the salary structure at EY, explore the key factors that influence your earning potential, and provide a clear outlook on what to expect.
What Does an Ernst & Young Professional Do?
Ernst & Young is not a single job but a global powerhouse of professional services. A career here means working within one of its distinct service lines, each with unique roles and responsibilities. The primary function is to help clients—from startups to Fortune 500 corporations—navigate complex business challenges, ensure regulatory compliance, and drive growth.
EY's main service lines include:
- Assurance: Primarily involves financial audit and forensic services to provide confidence in the validity of a company's financial statements and internal controls.
- Tax: Helps clients comply with complex tax laws, manage their tax liabilities, and navigate international tax regulations.
- Consulting: Works with businesses to improve performance, manage risk, and transform their operations. This includes technology, finance, supply chain, and cybersecurity consulting.
- Strategy and Transactions (SaT): Advises clients on managing their capital agenda, including mergers, acquisitions, divestitures, and strategic financial planning.
Average Ernst & Young Salary
While a single "average salary" can be misleading due to the wide variety of roles, we can analyze data from reputable sources to establish a reliable baseline.
According to data aggregated by Glassdoor, the estimated total pay for a position at Ernst & Young is approximately $98,000 per year in the United States. This figure blends entry-level roles with experienced positions. A more useful way to view compensation is by career level:
- Staff / Associate (0-2 years): $70,000 - $90,000
- Senior Staff / Senior Associate (2-5 years): $90,000 - $125,000
- Manager (5-8 years): $130,000 - $175,000
- Senior Manager (8+ years): $180,000 - $250,000+
*Disclaimer: These figures are estimates based on self-reported data from sources like Glassdoor and Payscale and should be used as a general guide. They include base salary and may factor in additional compensation like bonuses.*
Key Factors That Influence Salary
Your exact salary at EY will be determined by a combination of factors. Understanding these variables is key to maximizing your earning potential.
### Level of Education
A Bachelor's degree in a relevant field like Accounting, Finance, Economics, or Computer Science is the standard entry requirement. However, advanced degrees can impact both your starting position and salary. A Master of Accountancy (MAcc) is common for those in Assurance or Tax and can lead to a higher starting salary. An MBA from a top-tier business school is highly valued, particularly for entry into the Consulting or Strategy and Transactions practices, often resulting in a significantly higher salary and a post-MBA senior associate or consultant role.
Furthermore, professional certifications are a major driver of compensation. The Certified Public Accountant (CPA) license is virtually essential for advancement in Assurance and Tax and comes with salary bumps and bonuses upon completion. Other valuable certifications include the Chartered Financial Analyst (CFA) for transactions roles or specific tech certifications (e.g., AWS, SAP) for technology consultants.
### Years of Experience
Experience is arguably the most significant factor in EY's structured compensation system. The firm has a clear and well-defined career ladder, with salary bands increasing at each promotional step.
- Staff/Associate: The entry-point for recent graduates.
- Senior: Typically achieved after 2-3 years, this role involves more complex tasks and managing junior staff. This promotion comes with a substantial salary increase.
- Manager: After 5-6 years of total experience, professionals can be promoted to Manager. This role shifts focus to project management, client relationships, and team leadership, with another significant pay jump.
- Senior Manager: This level involves managing multiple projects and teams, driving business development, and is the final step before being considered for Partner or Principal.
### Geographic Location
EY adjusts its salaries based on the cost of living in different metropolitan areas. An employee in a high-cost-of-living (HCOL) area like New York City, San Francisco, or Boston will earn a considerably higher base salary than an employee in the same role in a lower-cost-of-living (LCOL) area like Kansas City or Charlotte. This cost-of-living adjustment (COLA) ensures that compensation remains competitive across all markets. When considering an offer, it's crucial to evaluate the salary in the context of the local cost of living.
### Area of Specialization / Service Line
The service line you work in has a profound impact on your salary. While all are competitive, some business lines command higher fees from clients and thus offer higher compensation.
- Consulting and Strategy and Transactions (SaT): These advisory-focused roles often have the highest earning potential. The specialized, high-impact nature of the work, such as M&A advising or technology implementation, commands a premium.
- Tax: Tax professionals, especially those specializing in high-demand areas like International Tax or M&A Tax, have very strong earning potential.
- Assurance: While foundational to the firm, audit salaries have historically been slightly lower than those in advisory practices. However, they remain highly competitive and offer excellent stability and career progression.
Within these lines, further specialization matters. For instance, a cybersecurity consultant may earn more than a general business process consultant.
Job Outlook
While EY does not publish its own hiring forecasts, we can look to the U.S. Bureau of Labor Statistics (BLS) for the outlook of the core professions it employs.
- Accountants and Auditors: The BLS projects a 4% growth for this profession from 2022 to 2032, which is about as fast as the average for all occupations. The median pay in May 2022 was $78,000 per year. The constant need for financial accountability and regulatory compliance ensures a steady demand for these professionals.
- Management Analysts (Consultants): The outlook here is even stronger. The BLS projects a 10% growth from 2022 to 2032, much faster than the average. The median pay in May 2022 was $99,410 per year. This reflects the growing need for organizations to improve efficiency and navigate a rapidly changing business environment.
Given these strong underlying trends, the demand for talent at firms like EY is expected to remain robust, making it a secure and promising career choice.
Conclusion
A career at Ernst & Young offers a powerful combination of professional development, prestige, and financial reward. While salaries are influenced by a structured set of factors including your education, location, and specialization, the overall compensation is highly competitive.
For those considering this path, the key takeaways are:
- Compensation is structured and progressive: Your earnings will grow predictably as you gain experience and climb the promotional ladder.
- Specialization pays: High-demand fields like technology consulting, M&A advisory, and international tax offer the highest salary potential.
- Invest in yourself: Pursuing advanced degrees and professional certifications like the CPA or an MBA can significantly boost your long-term earnings.
Ultimately, a position at EY is more than just a job; it's an investment in your professional future. The skills, experience, and network you build will provide a foundation for a lucrative and fulfilling career, whether you stay to make partner or leverage your experience in another industry.