MBA Salaries from US B-Schools
This may not be the latest data.
|Rank||Business School||Pre MBA
|1||U. of Pennsylvania (Wharton)||$60,000||$156,000||160%|
|13||UC — Berkeley (Haas)||$50,000||$135,000||170%|
|18||UNC — Chapel Hill||$48,000||$125,000||160%|
|19||Texas — Austin (McCombs)||$45,000||$107,000||138%|
|25||Washington U. (Olin)||$42,000||$109,000||160%|
As this table shows, the average salary increase ranges from 138% at UT Austin to 211% at NYU (Stern).
The key takeaway from this table is that there is some cap on the amount recruiters are willing to pay first-year MBAs without regard to their pre-MBA work experience – which we explicitly assume is closely tied to the pre MBA salaries.
Before you take this table too seriously, we want to clearly state that these numbers are simply averages. If you decide upon graduation that you would like to work for a small start up and a nice options package (we concede those days are probably gone until the business cycle comes full circle again) or if you decide to work for a large Fortune 500 with good job benefits and security, then you are NOT going to make the these 6 figure salaries your first year out of business school.
* Pre MBA salaries are estimates we developed from many sources. Certain business schools do not collect this information from their incoming students. Those schools that do report these salaries use self-reported information anyway.
Among the US and European business schools offering the highest salaries, 19 are in the US, compared to 14 in the UK and 17 in Continental Europe. With an average of $109,678, this is the first year on record in which Continental European business schools have reported higher average salaries, in dollar terms, than their US or UK counterparts. Employment rates are similar across all these schools with between 90 percent to 93 percent of students having accepted employment within three months of graduation; the profile of candidates is also similar, with an average of between five and seven years of work experience.
According to The National Association of Colleges and Employers, in 2006, average MBA salaries were $90,000. First-year MBA graduates’ salaries average between $50,000 and $75,000–with more than 40% earning $75,000 and up.
The Graduate Management Admission Council (GMAC) compiled salaries of first-year MBA graduates in different career fields. The average 2006 base salaries plus additional compensations were as follows:
* Health Care – $111,477
* Finance – $103,122
* Consulting – $101,736
* Energy/Utilities – $100,263
* High Tech – $98,621
* Manufacturing – $98,417
* Products/Services – $94,558
* Non-Profit/Government – $73,125
As a potential employee, you will have to weigh the benefits of accepting a position with a higher base salary against a position with a lower salary that offers bonuses and other perks. These perks can include annual bonuses, car allowance, tuition reimbursement, relocation costs and more.
MBA Salary Factors
Of course, average salary information is just a guideline to help you know what to expect. Starting salaries could be much higher or much lower, depending on many different factors that affect salaries. These factors include:
* Your school’s reputation
* Post-MBA role
* Geographic location
* Industry you are employed in
* Cost of living
* Pre-MBA experience
* Undergraduate major
Years of Experience
Experience is a great teacher, and the more time you spend working in a company, the more vital you become to the organization. Because most companies recognize this, starting salaries for MBA program graduates are generally lower than those of their co-workers with more time on the job.
According to Payscale.com the majority of MBA graduates can expect to earn on average $50,427 in their first year. As your length of time on the job increases, so will your income. Here is a sample of average salaries you can expect as your time on the job increases:
* Under 1 year – $50,427
* 1 to 4 years – $56,090
* 5 to 9 years – $74,053
* 10 to19 years – $94,038
* Over 20 years – $103,600
The geographic location of your employer plays a large role in the salary you can expect. You’ll need to decide if you’re willing to relocate to earn a higher income. Different states and cities throughout the U.S. have different average incomes based on their economy, the vitality of their businesses and the cost of living in that location. Here are some average salaries of MBA graduates based on state:
* California – $96,599
* New York – $95,083
* Massachusetts – $89,267
* Illinois – $83,998
* Pennsylvania – $78,536
* Texas – $78,532
* Florida – $67,130
Average MBA Salaries Based on City
* New York City – $102,869
* Boston – $95,605
* Los Angeles – $94,243
* Chicago – $89,495
* Atlanta – $82,410
* Houston – $80,711
* Dallas – $80,595