If you’re wondering “How much does a Principal at a consulting firm earn?” or “What do I need to do to become a Principal?”, this article covers everything you need to know in the following order:
- Main responsibilities of a Principal
- Average salary of a Principal at the BIG4
- Skills required of a Principal
This article is useful for those aiming to become a Principal. Please read to the end.
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What Is a “Principal” — A Consultant’s Title?
A Principal is one of the titles within a consulting firm.
Job titles at consulting firms differ from those at general companies, and a Principal is equivalent to an executive-level position at a general company. It is the second highest title after Partner — the highest — making it a high-earning role with correspondingly high skill requirements.
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Difference Between Partner and Director
Titles that are often confused with Principal at a consulting firm include “Partner” and “Director.”
A Partner is the highest-ranking title at a consulting firm, and is positioned as a co-owner of the business.
A Director holds an equivalent position to Principal; depending on the firm, the title “Director” may be used instead of “Principal.” For a detailed breakdown of a Partner’s responsibilities and average salary, please refer to the related article below.
Responsibilities of a Consulting Principal
Rather than being directly involved in individual projects, a Principal focuses on work that enhances the overall value of the consulting firm. Let’s take a closer look at the main responsibilities of a Principal.
New Business Development
The first responsibility of a Principal is “new business development.” This involves approaching executives and officers at potential client companies to propose solutions to management challenges and improvements to business models.
Principals discover new clients through seminars, book publications, and personal connections, making them the “face of the consulting firm.” Since compensation can vary significantly based on sales performance, new business development is one of the most critical responsibilities for a Principal.
Client Relationship Building
Another key responsibility of a Principal is “client relationship building.” In the consulting business, earning client trust is essential — it not only leads to repeat engagements but also makes it easier to present proposals smoothly.
Principals work to earn client trust by advising team members to prevent project delays and maintaining communication with the management teams of client companies.
Intellectual Property Development
A third responsibility of a Principal is “intellectual property (IP) development.” IP development refers to activities aimed at protecting and registering a company’s inventions and products as proprietary rights. Strengthening IP helps a company maintain a competitive edge and sustain its operations long-term.
As someone involved in the management of a consulting firm, a Principal may be entrusted with IP development as part of the firm’s business strategy. Since a wide range of knowledge is required, some Principals pursue qualifications such as Intellectual Property Analyst or Small Business Management Consultant (Chusho Kigyo Shindanshi).
Talent Development
The final responsibility covered here is “talent development.” Developing people is indispensable for a company’s growth, which is why many consulting firms today are investing heavily in this area.
Principals work to develop high-performing employees by advising Senior Managers and Managers, and by formulating talent strategies.
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Average Salary of a Consulting Principal
The estimated average salary for a Principal is approximately ¥20 million per year. Given that the average salary for a Consultant is roughly ¥6–10 million, it’s clear that advancing to the Principal level can result in a significant increase in compensation.
That said, Principal salaries vary by firm. In addition, strong performance can push annual earnings above ¥20 million in some cases.
Principal Salaries by Industry Sector
The table below summarizes salaries by consulting sector.
| Sector | Years of Experience | Annual Salary |
|---|---|---|
| Foreign, Management & Strategy Consulting | 5–15 years | ¥17M–¥25M |
| General, Web & IT Consulting (Senior Manager) | 5–15 years | ¥13M–¥18M |
| Finance & Tax Consulting | 5–15 years | ¥13M–¥18M |
Foreign consulting firms operating on a global scale and management/strategy consulting firms involved in client corporate governance tend to offer relatively higher salaries.
[BIG4] Deloitte Tohmatsu — Salary by Title
Let’s also look at average salaries by title at the world’s four major audit firms — the BIG4. First, here is the salary breakdown for Deloitte Tohmatsu.
| Title | Annual Salary |
|---|---|
| Business Analyst | ¥5.8M+ |
| Consultant | ¥7M–¥8M |
| Senior Consultant | ¥8M–¥11M |
| Manager | ¥13M–¥17M |
| Senior Manager | ¥15M–¥20M |
| Partner / Director | ¥20M+ |
The average salary for a Director — the equivalent of Principal — at Deloitte Tohmatsu is ¥20M or more.
[BIG4] PwC Consulting — Salary by Title
| Title | Annual Salary |
|---|---|
| Associate | ¥5.5M+ |
| Senior Associate | ¥7M–¥10M |
| Manager | ¥10M–¥15M |
| Senior Manager | ¥14M–¥20M |
| Partner / Director | ¥20M+ |
Directors at PwC Consulting LLC — equivalent to the Principal position — receive a salary of ¥20M or more.
[BIG4] KPMG Consulting — Salary by Title
| Title | Annual Salary |
|---|---|
| Analyst | ¥5.7M+ |
| Consultant | ¥6M–¥7M |
| Senior Consultant | ¥7M–¥9M |
| Manager | ¥9M–¥13M |
| Senior Manager | ¥13M–¥16M |
| Partner / Director | ¥15M+ |
The average salary for the Principal-equivalent level at KPMG Consulting is approximately ¥15M or more.
[BIG4] EY Advisory & Consulting — Salary by Title
| Title | Annual Salary |
|---|---|
| Analyst | ¥5.5M+ |
| Consultant | ¥6M–¥7M |
| Senior Consultant | ¥7.5M–¥10M |
| Manager | ¥10M–¥15M |
| Senior Manager | ¥14M–¥18M |
| Partner / Director | ¥18M+ |
At EY Advisory & Consulting, Directors — the equivalent of the Principal level — receive a salary of approximately ¥18M or more.
Is It Difficult to Get Promoted to Principal?
Getting promoted to Principal as a consultant is considered quite difficult.
To begin with, only about 30% of employees advance to Manager — the level just below Principal. This means that even fewer people are able to reach the Principal level.
Since Principal is a higher title than Manager — who already has project leadership responsibility — the required skill level is correspondingly higher. Those aiming to become a Principal should take time to understand the skills and qualities needed.
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Skills and Qualities Required to Be Promoted to Principal
The key skills needed to aim for the Principal level are as follows:
- Logical Thinking
- Communication Skills
- Management Skills
- Presentation Skills
- Leadership
- Long-Term Perspective
- Desire to Learn
Logical Thinking
“Logical thinking (logical reasoning)” is recognized as a fundamental skill for consultants.
Logical thinking refers to the ability to simplify complex situations and guide them toward rational conclusions. Since consultants are constantly required to think critically, a lack of logical thinking may make advancement to Principal difficult.
Logical thinking is a skill that can be developed through practice, so those who feel they struggle with it are encouraged to train regularly.
Communication Skills
One of the skills required of a Principal is “communication skills.” Communication skills refer to the ability not only to convey one’s own thoughts effectively, but also to genuinely understand what others are saying and to exchange ideas smoothly.
Since a Principal’s main duties involve winning new business and building trusted relationships with clients, consultants who excel at communication tend to be highly evaluated.
Management Skills
Management skills are required at the “Manager” and “Senior Manager” levels — the steps just below Principal.
Without sufficient management skills, advancing to Manager or Senior Manager becomes difficult, making it extremely challenging to reach Principal. The first step is to develop the ability to manage project schedules, budgets, and tasks — then work toward promotion to Manager and eventually Principal.
Presentation Skills
To succeed as a Principal, it is essential to develop “presentation skills.”
Presentation skills refer to the ability to engage an audience by understanding what they want to hear — rather than simply reading from slides or documents. Consultants regularly make proposals to clients during projects, and without strong presentation skills, it becomes difficult to win clients over.
Leadership
“Leadership” is also cited as an important skill for a Principal to develop.
Leadership refers to the ability to unite a team toward a specific goal. If team members don’t trust their leader and the team fails to function cohesively, projects can suffer in quality or experience delays.
Those looking to advance to Principal should work on developing the kind of leadership that makes subordinates feel confident and willing to follow.
Long-Term Perspective
One quality commonly shared by those who reach the Principal level is a “long-term perspective.”
Consultants must address not just immediate issues but also the root causes of their clients’ challenges. Solving problems at a fundamental level requires thinking about how the environment will change over the next ten years and how markets will evolve — all of which demands a long-term outlook.
Developing this perspective requires regularly consuming diverse sources of information and continuously building knowledge.
Desire to Learn
Many of those who reach the Principal level tend to have a strong “desire to learn.”
Consultants with high learning motivation don’t stop at what is assigned by the company or required for their role — they actively seek out and absorb information of their own accord. A consultant with broad knowledge can approach client proposals from multiple angles, making it easier to earn strong evaluations.
Note, however, that evaluation criteria vary significantly from firm to firm.
Career Paths for Consultants Beyond Principal
A consultant’s experience can be leveraged across a variety of career paths beyond becoming a Principal. Here are four representative career options for consultants:
- Transfer to a firm in a different sector
- Move to an operating company
- Start your own business
- Go independent as a freelancer
Transfer to a Firm in a Different Sector
After gaining experience at one consulting firm, moving to a consulting firm in a different area of specialization is one career path available.
For example, a consultant who supported systems implementation in the security division of a general consulting firm might transition to an IT-focused consulting firm.
Regardless of sector, consultants are always expected to “solve client challenges.” As a result, the proposal skills and presentation abilities developed as a consultant translate effectively into other fields.
Move to an Operating Company
Moving from a consulting firm to an operating company is another common career path.
Compared to general company employees, consultants are said to develop business skills at a faster pace. As a result, consultants tend to hold high market value, making it easier to stand out when transitioning to operating companies.
For instance, a consultant might leverage their specialized expertise to join a corporate project team — a practical and viable transition plan.
Start Your Own Business
A certain number of consultants choose to start their own business rather than remain at an operating company or consulting firm. In fact, there are many successful examples of companies founded by consultants who came from major firms.
At “boutique consulting firms” — which operate with a lean team of specialists — it is especially common for alumni of large consulting firms to strike out on their own.
For more on boutique consulting firms, please refer to the related article below.
Go Independent as a Freelancer
In recent years, an increasing number of consultants are choosing to go independent as freelancers.
Freelancers work by contracting with clients on a project-by-project basis. By securing high-value engagements, there is potential to earn more than working at a consulting firm.
Furthermore, freelancing can offer a better work-life balance than working at a firm, allowing consultants to realize their ideal working style.
Mirai Works Co., Ltd. also operates a matching service for consultants working as freelancers. If you are looking for freelance consulting engagements, please consider using our service.
\ Track record with over 950 client companies /
What Is a “Principal Consultant” at JAC?
While researching Principals, you may have come across the term “Principal Consultant.”
A Principal Consultant is one of the titles used at JAC. Let’s take a closer look at what the Principal Consultant role entails at JAC.
What Is JAC?
JAC refers to JAC Recruitment Co., Ltd., a firm specializing in recruitment services for global executives, managers, and specialist professionals.
The firm has a strong track record in placing talent at global and foreign-affiliated companies, with international business accounting for over 50% of its operations.
JAC employs a consultant-type business model that supports both companies and candidates, and the firm has approximately 1,200 professional consultants on staff.
What Is a Principal Consultant?
A Principal Consultant is one of the titles within JAC. The career steps leading up to Principal Consultant are as follows:
- Associate Consultant
- Consultant
- Senior Consultant
- Principal Consultant
- Senior Principal
The role of a Principal Consultant involves providing consulting services related to management, organizational HR, and career development. Upon advancing to Senior Principal, one can take on the role of an opinion leader within the company.
Difference Between Principal Consultant and Senior Principal
A Senior Principal is the level above Principal Consultant. In this role, one deepens expertise in their area of responsibility, builds relationships with client executives and candidates, and provides advice from a long-term perspective.
It is also worth noting that there is a parallel career path available at JAC, where one can advance to Manager or Senior Manager without becoming a Principal Consultant.
Reference: JAC Recruitment “Career Path”
Salary of a Principal Consultant at JAC
The average salary for a Principal Consultant is approximately ¥8M–¥10M per year.
JAC’s company-wide average salary is ¥8.47M, indicating a high overall compensation level. Upon reaching a Department Head (Director-level) position, one can expect to earn ¥11M or more. Those aiming for high earnings should focus on building skills and a strong track record in order to advance to Department Head level.
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Overview of Consultant Titles
To deepen your understanding of the Principal role, let’s also review the following titles:
Analyst
An Analyst is the entry-level title at a consulting firm. Many new graduates and early-career hires start as Analysts and work their way toward becoming Consultants. Analysts typically handle assistant-level tasks such as document preparation, research, and data analysis.
The annual salary for an Analyst is approximately ¥5M–¥6M, which exceeds the national average (FY2024) of ¥4.78M — indicating that even newcomers can expect above-average compensation.
Reference: National Tax Agency “FY2024 Private Sector Wage Survey“
Consultant
A Consultant holds the second-lowest position in a consulting firm’s hierarchy. Most career changers enter at this level. Compared to Analysts, Consultants are given a greater degree of autonomy and are responsible for independently producing deliverables, building hypotheses, and conducting interviews.
The annual salary for a Consultant is approximately ¥6M–¥10M. While Analyst salaries tend to be relatively uniform, Consultant compensation varies based on performance, skills, and experience.
Senior Consultant
A Senior Consultant holds the position one level above Consultant. Many consultants advance to this level after accumulating roughly 3–8 years of experience. In addition to standard consulting work, Senior Consultants take on responsibilities such as project management and systems development. The average annual salary for a Senior Consultant is approximately ¥8M–¥12M.
Manager
A Manager is equivalent to a section chief (kacho) at a general company. This role involves overseeing the entire project, including quality management, budget management, and progress tracking. The Manager title carries significantly greater responsibility compared to Consultant or Senior Consultant, making promotion to this level highly competitive — and it is often the point at which many consultants choose to move to other firms or industries.
The average annual salary for a Manager is approximately ¥10M–¥15M — a level at which compensation increases substantially. For more details, please refer to the article below.
Senior Manager
A Senior Manager holds the position above Manager. In addition to overseeing multiple projects, Senior Managers are also responsible for developing subordinates. Like the Manager role, advancing to Senior Manager is limited to a select group of consultants, and a high level of skill is required. The average annual salary for a Senior Manager is approximately ¥15M–¥20M, and compensation can fluctuate significantly based on performance.
Principal is the position one step above Senior Manager.
Partner
A Partner holds the highest-ranking position at a consulting firm. Partners are involved in firm management as co-owners and engage in business development to acquire new clients.
Depending on individual performance and firm size, it often takes more than 15 years to reach the Partner level. It is said that only about 1–2% of consultants are ever promoted to Partner.
The average annual salary for a Partner is approximately ¥20M–¥30M, though exceptional performance can lead to compensation in the hundreds of millions of yen.
Each of the titles introduced above is covered in more detail in other articles.
Summary
In this article, we covered the responsibilities, salary, and required skills and qualities of a consulting Principal for those interested in pursuing this career path.
Advancing from Consultant to Principal requires developing advanced skills and building a strong track record.
ConsulNext.jp provides job listings for those looking to enter the consulting industry. We specialize in supporting career transitions for professionals in their 20s and 30s. If you’re interested, please register today.
