UCLA Anderson | Mr. Military To MGMNT Consulting
GMAT 740, GPA 3.7
Stanford GSB | Ms. Anthropologist
GMAT 740, GPA 3.3
MIT Sloan | Ms. Environmental Sustainability
GMAT 690, GPA 7.08
Wharton | Mr. Data Scientist
GMAT 740, GPA 7.76/10
Harvard | Ms. Nurturing Sustainable Growth
GRE 300, GPA 3.4
MIT Sloan | Ms. Senior PM Unicorn
GMAT 700, GPA 3.18
Stanford GSB | Mr. Future Tech In Healthcare
GRE 313, GPA 2.0
Harvard | Mr. Lieutenant To Consultant
GMAT 760, GPA 3.7
Duke Fuqua | Ms. Consulting Research To Consultant
GMAT 710, GPA 4.0 (no GPA system, got first (highest) division )
MIT Sloan | Mr. Agri-Tech MBA
GRE 324, GPA 4.0
Stanford GSB | Mr. “GMAT” Grimly Miserable At Tests
GMAT TBD - Aug. 31, GPA 3.9
UCLA Anderson | Ms. Tech In HR
GMAT 640, GPA 3.23
MIT Sloan | Mr. Electrical Agri-tech
GRE 324, GPA 4.0
Yale | Mr. IB To Strategy
GRE 321, GPA 3.6
Harvard | Mr. Overrepresented MBB Consultant (2+2)
GMAT 760, GPA 3.95
Kellogg | Ms. Freelance Hustler
GRE 312, GPA 4
Kellogg | Ms. Gap Fixer
GMAT 740, GPA 3.02
Harvard | Mr. Little Late For MBA
GRE 333, GPA 3.76
Cornell Johnson | Mr. Wellness Ethnographer
GRE 324, GPA 3.6
Wharton | Ms. Financial Real Estate
GMAT 720, GPA 4.0
Harvard | Mr. The Italian Dream Job
GMAT 760, GPA 4.0
NYU Stern | Mr. Labor Market Analyst
GRE 320, GPA 3.4
Wharton | Mr. Indian IT Auditor
GMAT 740, GPA 3.8
Berkeley Haas | Mr. LGBT+CPG
GMAT 720, GPA 3.95
Kellogg | Mr. Naval Architect
GMAT 740, GPA 4.0
Harvard | Mr. Navy Submariner
GRE 322, GPA 3.24
Wharton | Ms. Financial Controller Violinist
GMAT 750, GPA 4

Payback On An MBA: $55K To $47K Bump

Source: Bloomberg Business

Source: Bloomberg Business

How much is an MBA degree worth?

The latest data from Bloomberg’s survey of 6,400 second-year MBAs who gained jobs by April 2014 shows it’s worth quite a bit–even more so for job switchers.

MBA grads who used the degree to switch careers generally saw bigger pay increases over their pre-MBA compensation than those who built on their earlier work experience and stayed in the same industry.

AN 85% INCREASE IN PAY OVER PRE-MBA LEVELS FOR CAREER SWITCHERS

For the MBAs who ventured into new fields, the median pay increase was a whopping $55,000 toward a salary of $120,000. That translates into an 85% increase in pay at a time when wage growth for managerial and professional employees has been relatively stagnant. And that is $55K more a year, every year for the foreseeable future which means that annual percentage increases on that base are higher, too.

MBAs who returned to their industries actually reported slightly higher starting pay–roughly $122,000–but the bump in salary was less, a median $47,000 increase because pre-MBA pay was higher at a median of $75,000 instead of $65,000 for those who did the switch. Nothing to sneeze at, for sure. But eight grand less than if you switched careers.

Of course, all of this varies greatly depending on which career you enter and whether you leverage a summer internship into a full-time job offer. The most lucrative MBA career path today is private equity but it is almost impossible to land a PE job without prior experience. So in that case, having a work background in PE and staying in the field would likely result in the largest compensation increases of any graduating MBA today.

MBAS WHO LEVERAGE SUMMER INTERNSHIPS TYPICALLY GET THE BIGGEST BUMP

What’s driving the higher increase for career switchers is the rush into consulting by many MBAs. The standard pay package at McKinsey, Bain and BCG is a $135,000 base and a $25,000 signing bonus. And many MBAs who venture into consulting are career switchers.

Other research by the Graduate Management Admission Council, which surveys a much broader array of business schools, finds similarly impressive increases in pay, especially for graduates who gain offers from their internship employers. The study found that the average percentage increase in post-degree salary was 36% for those staying with their same employer, 70% for those accepting a new offer, and 84% for graduates who joined their internship company.

“Participating in an internship while in school typically produces an additional 28 percent increase above the baseline salary increase a student receives who does not participate in an internship,” according to the GMAC study. “After graduation, the benefits of an internship are even greater. Those who participated in an internship and received an offer of employment from that internship more than doubled the salary increase received by graduates who continued working for the same employer during and after business school.”

DON’T MISS: THE MBA BUMP: HOW MUCH TO EXPECT?