Chicago Booth | Ms. IB Hopeful
GMAT 710, GPA 2.77
Columbia | Mr. Infra-Finance
GMAT 710, GPA 3.68
London Business School | Mr. Indian Banking Leader
GMAT 750, GPA 3.32
Stanford GSB | Mr. Pizza For Breakfast
GMAT 730, GPA 3.6
Kenan-Flagler | Mr. Top Performer
GMAT 730, GPA 3.3
Georgetown McDonough | Mr. Navy Vet
GRE 310, GPA 2.6
Harvard | Ms. Comeback Kid
GMAT 780, GPA 2.6
Darden | Mr. Military Communications Officer
GRE Not taken yet, GPA 3.4
Kellogg | Ms. Retail To Technology
GMAT 670, GPA 3.8
Ross | Mr. Top 25 Hopeful
GMAT 680, GPA 3.3
UCLA Anderson | Ms. Qualcomm Quality
GMAT 660, GPA 3.4
Chicago Booth | Ms. Hotel Real Estate
GMAT 730, GPA 3.75
Chicago Booth | Mr. EduTech
GRE 337, GPA 3.9
Yale | Mr. Gay Social Scientist
GMAT 740, GPA 2.75 undergrad, 3.8 in MS
MIT Sloan | Mrs. Company Leader
GMAT 760, GPA 2.92
Wharton | Mr. Cross-Border
GMAT 780, GPA 3.7
UCLA Anderson | Mr. Career Change
GMAT Have yet to take. Consistent 705 on practice tests., GPA 3.5
HEC Paris | Mr. Introverted Dancer
GMAT 720, GPA 4.0
Kellogg | Mr. Safety Guy
GMAT 720, GPA 3.3
Kellogg | Mr. Danish Raised, US Based
GMAT 710, GPA 10.6 out of 12
Harvard | Mr. Aspiring FinTech Entrepreneur
GMAT 750, GPA 3.9
Stanford GSB | Mr. Fill In The Gaps
GRE 330, GPA 3.21
INSEAD | Mr. Behavioral Changes
GRE 336, GPA 5.8/10
McCombs School of Business | Mr. Texas Recruiter
GMAT 770, GPA 3.04
USC Marshall | Mr. Strategy Consultant
GMAT 730, GPA 4.0
Berkeley Haas | Mr. Entertainment Agency
GMAT 750, GPA 3.8
Chicago Booth | Mr. Quant
GMAT 750, GPA 3.7

Wharton Tumbles In Forbes’ 2019 MBA Ranking

The University of Chicago’s Booth School of Business

BIGGEST RANKINGS GAIN? VANDERBILT OWEN

The school showing the biggest gain in this year’s ranking is Vanderbilt University’s Owen School of Management which jumped 19 places to rank 30th, from 49th two years ago. William & Mary’s Mason School of Business moved up 14 spots to rank 44th, from 58th in 2017.  Besides USC’s 12-place improvement that put the school in the Top 25, Fordham University’s Gabelli School of Business rose 11 places to rank 59th from 70th two years ago.

The double-digit declines were led by Texas A&M’s Mays School which plunged 13 places to rank 33rd, from 20th the last time Forbes did its ranking. Purdue University’s Krannert School of Management plummeted a dozen places to rank 40th, from 28th, while Wisconsin Business School fell 11 places to 35th from 24th.

AN ROI RANKING THAT DISREGARDS THE QUALITY OF THE MBA EXPERIENCE

Unlike other rankings that take into account the quality of incoming students, their satisfaction with the MBA program and their immediate employment and salary, the Forbes list is based on the median return on investment achieved by an MBA class that graduated five years ago. The dollars-and-cents calculations, measuring salary, bonuses and exercised stock options, place no value on the education, the faculty, the alumni networks, or any other factor that would generally measure the quality of an MBA program. In its novel approach, Forbes also assumes that compensation would have risen half as fast as students’ post-MBA salary increases if the graduates had not attended business school.

The numbers reported by Forbes are also adjusted to take into account cost-of-living expenses, and the earnings gains are discounted using a rate of 4.1% which is the discount rate most recently used by large companies in their pension funds. The magazine also discounts tuition to account for students who pay in-state rates and for scholarships and the non-repayable financial aid that schools dole out. Forbes does not deduct taxes from the earnings gains or account for the debt repayments from student loans

The methodology is largely based on self-reported data from MBA alumni who could inflate their compensation to help their schools score better on the list. Schools that place more students into high-paying finance jobs are also likely to do much better than schools where a higher percentage of students accept jobs in lower-paying sectors, including non-profits, the government, or education. The ROI calculation, moreover, is also subject to error based on the percentage of alums who complete and return the surveys to Forbes. The magazine says it had a 25% response rate from the 17,500 alumni it surveyed at more than 100 business schools.

The surveys returned to Forbes show that the ROI on the MBA degree remains strong. Students at the top 25 programs increased their pre-MBA income from $73,000 on average to $193,000. Only two years ago, the equivalent numbers averaged $70,000 before school and $179,000 for grads five years out. Compensation increased by 10% annually since graduation. Forbes also found that scholarship awards to two-thirds of the current crop of students.

DON’T MISS: U.S. NEWS’ 2019 MBA RANKING or THE FINANCIAL TIMES 2019 MBA RANKING

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.