Duke Fuqua | Ms. Account Executive
GMAT 560, GPA 3.3
NYU Stern | Mr. Military Officer
GRE In Progress, GPA 2.88
Cornell Johnson | Mr. IT To IB
GMAT 660, GPA 3.60
Stanford GSB | Mr. Entrepreneurial Bassist
GMAT 740, GPA 3.61
Berkeley Haas | Mr. Green Business
GMAT 680, GPA 3.33; 3.9 for Masters
Kellogg | Mr. Real Estate Finance
GMAT 710, GPA 3.0
Kellogg | Mr. Finance To Education
GMAT 730, GPA 3.4
Stanford GSB | Ms. Artistic Engineer
GMAT 730, GPA 9.49/10
Emory Goizueta | Mr. Multimedia
GRE 308, GPA 3.4
UCLA Anderson | Mr. Commercial Banker
GMAT 700, GPA 3.3
IU Kelley | Mr. Construction Manager
GRE 680, GPA 3.02
Rice Jones | Mr. Back To School
GRE 315, GPA 3.0
Harvard | Mr. Healthcare Fanatic
GMAT 770, GPA 3.46
Harvard | Mr. Sovereign Wealth Fund
GMAT 730, GPA 3.55
Harvard | Mr. Smart Operations
GMAT 760, GPA 4.0
Darden | Mr. Strategy Manager
GRE 321, GPA 3.5
Ross | Mr. Airline Engineer
GMAT 730, GPA 3.73
Stanford GSB | Mr. Corporate VC Hustler
GMAT 780, GPA 3.17
Wharton | Mr. Marketing Director
GMAT 710, GPA 3.3
Ross | Ms. Healthcare Startup
GRE 321, GPA 3.51
Georgetown McDonough | Ms. Air Force
GMAT 610, GPA 3.8
Stanford GSB | Mr. JD To MBA
GRE 326, GPA 3.01
Harvard | Mr. MacGruber
GRE 313, GPA 3.7
Berkeley Haas | Mr. Poet At Heart
GMAT 740, GPA 3.7
Yale | Mr. Ukrainian Biz Man
GRE 310, GPA 4.75 out of 5
Darden | Mr. Former Scientist
GMAT 680, GPA 3.65
Stanford GSB | Mr. Sustainable Business
GRE 331, GPA 3.86

Still More Evidence Of The MBA’s Value

Money man

Just a week after Bloomberg released data that showed MBA graduates who switched careers getting a $55,000 increase over their pre-MBA pay, The Financial Times weighed in with its own data set on salary. The compensation numbers–for alumni three years out of an MBA program–was even more impressive.

MBA alumni who were 24 or under when they started their degree reported that their salary increased by nearly $69,000, up 145% over their pre-MBA pay. Alums who entered their MBA programs when they were 27 and 28 reported salary increases of $67,000, roughly doubling their pre-MBA pay, according to the FT. Older students, who enrolled at the age of 31 or above, had a pay increase of $56,000, or a 70% rise over pre-degree salary.

“Broadly speaking, the same pattern occurs in all industry sectors and countries, regardless of whether graduates work overseas or move to a different industry,” the newspaper reported. The data comes from the British newspaper’s survey of the MBA Class of 2011 used in its 2015 global MBA rankings published earlier this year (see 2015 Financial Times Global MBA Ranking).

FOLLOWS HIGHLY FAVORABLE BLOOMBERG DATA RELEASED UST LAST WEEK

Only a week ago, Bloomberg took its student survey data from its ranking published late last year to track returns. For the MBAs who ventured into new fields, the median pay increase was a whopping $55,000 toward a salary of $120,000. That translated into an 85% increase in pay at a time when wage growth for managerial and professional employees has been relatively stagnant. 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 (See Payback On The MBA: A $55K to $47K Bump).

The Financial Times data further makes the case in favor of an MBA degree.

The FT broke the alumni pay numbers out by world regions which showed that some of the highest returns were reported in South America. For alumni who entered their MBA programs at an age of 29 and 30, the salary increase was 131%, or $96,000 over their pre-MBA pay.

In North America, the FT said that alumni who entered their MBA programs at an age of 24 or below, reported salary increases of $67,000, a whopping 137% increase over their pre-degree pay. For graduates who started their MBA at 25 and 26, the salary rise was exactly the same, $67,000, representing a 110% increase over pre-MBA pay. For those aged 27 to 28, generally the sweet spot for a two-year MBA program, the increase was $64,000, or 89%.

OLDER STUDENTS SAW SLIGHTLY SMALLER INCREASES

The older the student, the lower the return, presumably because older students entered their MBA programs with higher salaries to begin with. Students in North American business schools who entered at age 29 or 30, reported a $61,000 increase, or an 81% jump.

In Oceania and Asia, the youngest students surveyed, aged 24 or less, reported massive percentage increases three years after graduation of 178%, or $71,000. Students who were 25 to 26 saw pay increases of 146%, or $72,000. For incoming students aged 27 and 28, the increase was 132%, or $76,000.

The payoff in Europe was nearly just as good. For students who were 27 to 28 when they started their MBA program, the increase three years after graduation was 94%, or $61,000.

The newspaper said that three out of four respondents to its alumni survey were aged between 25 and 30 when they started their MBA programs, while 21% were 31 or above and the remaining 4% were 24 or younger. “The older the participants were, the more likely they were to enroll in one-year European MBA programs as opposed to two-year U.S.-type MBA programs,” the FT said. “On average, 75% of those aged 26 or under attended two-year programs in comparison to only 43% of those aged 31 or above.”

The FT did not report how many completed responses were compiled to support the data it published nor the response rate to its survey.

Source: The Financial Times

Source: The Financial Times

About The Author

John A. Byrne is the founder and editor-in-chief of C-Change Media, publishers of Poets&Quants and four other higher education websites. He has authored or co-authored more than ten books, including two New York Times bestsellers. John is the former executive editor of Businessweek, editor-in-chief of Businessweek. com, editor-in-chief of Fast Company, and the creator of the first regularly published rankings of business schools. As the co-founder of CentreCourt MBA Festivals, he hopes to meet you at the next MBA event in-person or online.