Salary Increase from Tax Manager to Director at a Top 100 Firm – MCOL Insight
I’m currently a Tax Manager at a Top 100 firm to give you a sense of scale. While most of our branches are located in medium-sized metropolitan areas, my office is a bit of an anomaly as we sit in a much smaller town with a lower population. We’re categorized on the lower side of MCOL, and our area doesn’t have a substantial amount of business or industry.
I’m expecting to be promoted to Director this summer, but if that doesn’t happen, I hope it will take place next year. We’ve recently experienced a wave of retirements, with three colleagues, each with about 30-35 years of service, retiring within the past two years or planning to retire next year.
Currently, my salary is approximately $135,000.
What would be a reasonable salary increase I could expect upon making the transition to Director?
One response
Congratulations on your anticipated promotion to Director! That’s an exciting step in your career. In a top 100 firm, salary increases for a promotion from Tax Manager to Director can vary significantly based on factors such as location, firm size, and individual performance.
Given your current salary of $135k and considering your firm’s position in a medium-sized metro area, a reasonable expectation for a pay increase could range from 15% to 30%. This would put your potential new salary between approximately $155k and $175k.
However, since your office is in a smaller area and the market might be more competitive due to retirements, you might also consider negotiating based on the added responsibilities and the value you bring to the firm. It’s also worth checking in with colleagues or doing some research on industry salary benchmarks specific to your region to further inform your expectations.
Good luck with your promotion discussions!