Most MBA applicants are willing to go through the tough admission process and shell out over $100,000 of tuition fee, because they expect to be earning much more down the road.
But is it actually true? Do most b-school alumni land lucrative jobs that compensate them well for having to leave the labor market for two years and maybe even take a student loan?
On the one hand, we do hear the good news every so often. Graduates from the leading business schools like Wharton and Stanford usually do well for themselves, earning several hundred thousand dollars a year, Poets&Quants reports. Meanwhile, those who aren’t lucky enough to snatch a high salary make up for it in bonuses and other types of financial incentives that often match or even surpass their standard compensation.
On the other hand, not everyone can count on such an excellent return on investment. It will come as no surprise when we tell you that the biggest money to be made is in finance. Apparently, money does attract money after all. Moreover, employers offering the highest pay are mostly found in the Northeastern United States, with Wall Street a shining beacon for all the aspiring financiers. The third limitation, unfortunately, is the country of origin. As the hard figures show, non-U.S. graduates earn on average $70,000 less than their American counterparts do.
Who’s Earning More and Why
Scrolling down the lists of the best business schools whose alumni receive the most generous salary, you see all the familiar names. Stanford, Harvard, Chicago Booth, MIT Sloan, all these invariably make the top ten of any ranking you care to mention. It should be expected, however, as a school’s reputation goes a long way towards helping graduates pursue positions that pay well.
Still, it’s not just the school that’s important, as the best compensation tends to be offered to those MBAs who had an above-average income before they even considered enrolling. As for industries that bring you the most handsome pay, in addition to the already mentioned finance we have tech, of course. The complementary opposite to the Northeast is the Pacific Coast, the startup paradise and the dream destination for all those who wish to make their mark in the field of cutting-edge technology.
Who’s Getting Paid Less
As we said earlier, foreigners are not getting the best deals US has to offer. Thankfully, there are exceptions to the rule. Based on the statistics for 2017, some fortunate graduates from Dartmouth Tuck and Berkeley Haas managed to find employers willing to pay them $300,000 or more. The data on most other schools is not encouraging when it comes to non-American earnings. At Carnegie Mellon at least, there is no noticeable difference.
What do American MBAs have to do to receive a below-average salary? Work for a non-commercial organization, a state agency, or an educational institution. In the 2017 rankings, the lowest pay was $18,654, agreed to by a person who had graduated from Yale no less. The lowest bonuses start at one thousand dollars and reach maximum at seven and a half thousand.
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