MBA Pay: Top B-Schools, Top Dollar

Exclusive new research shows that grads of top business schools earn far more than lesser-ranked peers, both at graduation and over the long haul



Harvard Business School is the most expensive full-time MBA program, with tuition and required fees eclipsing $106,000 for two years. It's a big investment, but it pays off: HBS grads earn more money over the span of their careers than grads from any other MBA program. "It's the trickle down effect," says Robert Dammon, associate dean and professor of financial economics at Carnegie Mellon University's Tepper School of Business. "The kinds of students that the best schools attract are going to get the highest-paying jobs."

With few exceptions, Dammon is correct. The top-ranked -- and most expensive -- MBA programs produce the highest-salaried grads over the span of their careers, according to research commissioned by Bloomberg Businessweek. For the second year, Bloomberg Businessweek asked PayScale, a company that collects salary data from individuals through online pay comparison tools, to use its database of 23,000 MBA graduates at the top 45 U.S. business schools to calculate their median cash compensation -- salaries and bonuses -- around graduation and after they have an average of 5, 10, 15, and 20 years of work experience in the same industry. Bloomberg Businessweek used that data to calculate an estimate of median cash earnings over the entire 20-year span.

On average, MBAs from the top 45 B-schools will make around $2.5 million in base pay and bonuses over the course of a 20-year career. But there are great differences between the total compensation of the schools at the top of the list compared with those closer to the bottom, especially as MBAs move deeper into their careers. An MBA grad from Harvard, for instance, will earn nearly $4 million over the span of two decades. A grad from the University of Iowa's Tippie College of Business will earn less than half that. Newly minted MBAs at some top programs, such as Yale, earn high starting salaries but experience only a minimal increase over time. At other schools, such as the University of Connecticut, MBA grads more than double their salaries over the 20-year period.

Full report: Bloomberg Businessweek

 

This stuff is always misleading. The people who come out of the high end mba programs were already making close to that money before they went in. They should show how much they were making before they were in these top schools and how much they are making now that they are out.

 

Agreed

 

Hmm...interesting. I am currently trying to decide what would be the best MBA program for me. I am considering going international, maybe London

 

London school of economics?

 

I believe someone has already posted how they are cutting down on school funding in england but good luck over there though.

 

U.S. MBA colleges are ranked high in the world and internationally renowned.

Financial Times Global MBA Rankings 2010

1. London Business School (UK)
2. University of Pennsylvania - Wharton (USA)
3. Harvard Business School (USA)
4. Stanford University - GSB (USA)
5. Insead (France/Singapore)
6. Columbia Business School (USA)
7. IE Business School (Spain)
8. MIT Sloan School of Management (USA)
9. University of Chicago - Booth (USA)
10. Hong Kong UST Business School (China)
11. Iese Business School (Spain)
12. Indian School of Business (India)
13. New York University - Stern (USA)
14. Dartmouth College - Tuck (USA)

More Ranked U.S. MBA Colleges: Financial Times

 

The London Business School....I am currently checking admissions requirement and so forth

 

Too bad a BRITISH one came out on top.

 

I don't see anthing wrong with that.

 

Hence the reason I have a B.S. in International Business, and am working on my MBA now.

 

Where and what to do you do for work?

If you dont mind me asking.

 

I don’t mind at all, I’m always trying to put people on what I did, especially those that are in a similar position as me, like your self. My undergrad covered economics, finance, marketing and accounting extensively, but I'm doing accounting for a sister school (nearby the one I graduated from) and grant writing. I am fortunate to have several opportunities to choose to work from, I'm considering consulting on profit management with a firm in Chicago, I have a cousin that works for a pharmaceuticals company that wants me to come there and try to work my way into the executive positions from sales as he did, or a mentor/friend of mine wants me to come to his company and do import/exports logistics.

This is why I chose to do the international business, not so much because the international twist, but because it offered me the opportunity to have extensive work in the areas I mentioned above. What are you thinking of doing RS?

 

I havent decided yet. Investment Banking or a Wall Street trader maybe. The import/export logistics sounds interesting to me.

I also want to make the big bucks while not having a boring day job...so if you know of a good career path that would interest me. Let me know. Wouldn't mind traveling also..hence the Int'l.

 

Take your time, don't drag your feet, but take your time. a good thing about business, is that it's always there, you can always make an opportunity for yourself if you're bright and creative. Yeah, import/export logistics would be a good one if you wanted to travel, the ceo (R. Franz, great guy) is never in one of this business is never in one place for to long. If your wondering more about it, lrInternational.com.

 

That business is based in Illinois. Do they have a NY branch?

 

His company is indeed intriguing, adventuresome for some, & challenging in a different way, not say you are thinking of this, but I don't know if it's worth relocating for. With that said, unfortunately no, he doesn't have an NY branch. But the owner is an enterprising fellow, If you had some type of expertise that he deemed important, & could parlay some type business/connection in/to/from NY, you never know.

I imagine there are many opportunities in NY, I have only been to upstate (Alfred, Sunny Delhi, and a few other places in NY, been to NJ (getting close), obviously I have seen many a show about NY, what is your general feel for NY as far as jobs/employment & schooling

 

You should take a look into Acturial science. Its pretty interesting and the money is pretty good. One of my friends is eight years in making 150 and she doesn't work more than 50 hour weeks which is amazing for that kind of salary.

 

I have a friend who is an actuary and he makes ridiculous money. He is a math major and a nerd. He has had steady employment between insurance companies and always been sought after and paid very well. It is a great career. You have to follow your college degree with actuary exams/study too.

 

Yeah I took the first one in may and passed and now studying for the second one. I need to find a mentor because I'm not sure if I need to go back to school to get some type of math degree.