Financial Due Diligence Compensation Guide: Base Salary, Bonus, Promotion Levels
Learn what average salaries are for M&A transaction advisory services (TAS) roles by level and firm
Table of contents
- Financial Due Diligence Career Path Levels
- Financial Due Diligence Base Salary by Level and Firm
- Financial due diligence Bonus by Level and Firm
- Factors That Impact Financial Due Diligence Compensation
- Home Much Do You Make in Financial Due Diligence?
Financial due diligence career path levels
Financial due diligence (FDD) firms typically have five to seven levels of career progression. These levels will vary from firm to firm and based on performance, but we will use the following career progression for this article:
- analyst (year 1-2)
- associate (year 2-3)
- senior associate (year 3-4)
- manager (year 4-6)
- director (year 6-8)
- senior director/manager (year 8-12)
- partner (year 12+)
In an entry-level positions, individuals usually perform financial analysis and research, data collection and analysis, and first draft report writing. At the mid-level, the FDD professional takes on more complex work, manages teams, reviews work, and communicates with clients. Senior-level professionals oversee the team’s work and develop new business. Partner-level professionals lead the FDD practice and drive new business growth.
Financial Due Diligence base salary by level and firm (KPMG, EY, PWC, Deloitte, Alvarez & Marsal)
In the United States, base salaries can range based on seniority and location. Specifically, firms typically pay higher salaries in cities like New York, Chicago, and Los Angeles due to the higher cost of living. However, some firms (e.g., Alvarez and Marsal) pay the same amount across all cities. Below is a list of average salaries and a table that shows salary by financial due diligence firm:
- The average base salary for an entry-level FDD analyst is around $70,000 per year
- The average base salary for an associate is around $90,000 per year
- The average base salary for a senior associate is around $115,000 per year
- The average base salary for a manager is around $140,000 per year
- The average base salary for a director is around $160,000 per year
- The average base salary for a senior director/senior manager is around $210,000 per year
- The average base salary for a partner is north of $260,000 per year
Financial Due Diligence bonus by level and firm (KPMG, EY, PWC, Deloitte, Alvarez & Marsal)
FDD professionals often receive bonuses that are based on their performance and the performance of their team. Some firms include commissions in their bonus structure as well. Commissions are typicaly calculated based on a percentage of billable hours at your respective billable rate. Below is a list of average bonuses and a table that shows bonus by financial due diligence firm:
- The average bonus for an entry-level FDD analyst is around $15,000 per year
- The average bonus for an associate is around $20,000 per year
- The average bonus for a senior associate is around $30,000 per year
- The average bonus for a manager is around $45,000 per year
- The average bonus for a director is around $60,000 per year
- The average bonus for a senior director/senior manager is around $80,000 per year
- The average bonus for a partner is north of $500,000 per year
Factors that impact Financial Due Diligence compensation
Several factors can impact an FDD professional’s compensation, such as the size and reputation of the firm, the geographic location, industry focus, years of experience, and professional qualifications and certifications. The size and reputation of the firm can affect an FDD professional’s compensation, with larger and more reputable firms typically offering higher compensation packages. Geographic location can also have a significant impact on compensation, with professionals in major cities generally earning more than those in smaller towns. In addition, the industry focus can play a role in determining compensation, with certain industries paying higher salaries. Finally, years of experience and professional qualifications and certifications can impact compensation, with more experienced and qualified professionals typically earning higher salaries.
How much do you make in Financial Due Diligence?
The average total compensation for an FDD professional in the United States ranges from $80,000 to $160,000 per year, with some top performers earning more than $200,000 per year. However, compensation can vary depending on factors such as location, years of experience, industry focus, and professional qualifications and certifications.