McKinsey plans to cut the share of profits that partners take home in cash in an overhaul designed to simplify its pay structure, boost its capital and protect the firm from turmoil in the consulting industry.
The elite consultancy has told partners to expect a greater proportion of their pay in the form of equity, allowing the firm to bolster its capital cushion, according to people familiar with the changes. For some partners, the changes could affect tens of thousands of dollars.
The revamp — codenamed Project Acorn — will benefit younger partners by also bringing forward some pay that would previously not have been allocated for several years.
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