Sunday, June 28, 2020

What is the Value of an MBA

Poets Quants released some excellent data last week on the value of an MBA, concluding that b-school grads did very well in 2014 in regards to average salary and bonus. Here are some highlights from the article: †¢ In 2014, Harvard and Stanford grads earned average salaries that exceeded pre-recession levels for the first time. For Harvard MBAs, the average salary was $144,750, compared to $144,261 in 2008. The average salary for Stanford MBAs was $142,834, compared to 2008’s $140,771. †¢ There were a total of seven b-schools that reported average pay above $140K. Michigan Ross was one of these schools whose salary and bonus package jumped 20.9% in five years to $140,497. †¢ Washington Foster experienced a huge increase in average salary and bonuses, from $91,593 in 2010 up 36.9% to $125.367 in 2014. Average salary and bonuses also took huge leaps at Rochester Simon (30.6% from $78,083 to $101,961) and at Emory Goizueta (28.0% from $100,300 to $128,347). †¢ In 2010, only 24 U.S. business schools landed job that paid six-figures; in 2014, that number increased significantly to 44 schools. †¢ The top five schools with the most highly compensated grads were HBS, MIT Sloan, Stanford, Wharton, and Tuck. †¢ A few schools saw year-over-year decreases, including USC (from $116,011 to $114,129), Boston Carroll (from $96,915 to $94,963), and Minnesota Carlson (from $117,972 to $112,828). See the PQ article for more details. Related Resources: †¢ MBA in Sight: Focus on Finance †¢Ã‚  Does it Pay to Get an MBA? †¢Ã‚  PayScale: How Much Can You Earn, and How to Earn It?