MBAs Can Earn Up To $ 375K A Year In Finance Jobs
If there was any doubt as to whether the business school is worth the tuition, an MBA starting salary of nearly $ 400,000 for a role in finance surely settles the debate. The overwhelming salary went to a 2013 Kellogg graduate who went to work in private equity in Boston.
His salary of $ 375,000 per year for an investment management job is three times the median of $ 110,000 for other classmates entering the same industry.
The figures, released last week in a Northwestern University – Kellogg School of Management employment report, show that while finance may be the highest-paying career path, only 19% of the class went into the function at all. And only 3 percent went to investment management. The role of finance as dominant MBA Jobs may be falling.
Even more surprising, however, is the fact that Kellogg’s highest salary exceeds that of other major US-based business schools. The unnamed Kellogg MBA broke Wharton’s record of $ 350,000; Columbia’s $ 310,000; $ 250,000 for Chicago Booth and $ 177,500 for Harvard.
The report suggests that MBA graduates can quadruple the $ 80,000 spent on a one-year MBA program at Kellogg. Even at the best American business schools, like Wharton, which costs around $ 96,000 for a year of tuition, MBAs will quickly pay for their money.
MBA programs represent a huge investment and often require you to be absent from work for a significant amount of time. But even the median salary of $ 110,000 for Kellogg’s MBAs entering finance means graduates can recoup their losses quickly.
The new figures also suggest that when it comes to salary in the world of MBA jobs, where you study is becoming less and less important.
Although Harvard is consistently ranked the # 1 full-time MBA program in the world, Kellogg, rated by the Financial Times as the 13th best MBA program, offers higher salaries.
Kellogg, relatively low in the rankings compared to top schools such as HBS, equaled its American rivals in terms of base salary. The median of $ 120,000 was equal to that of Harvard, MIT Sloan, UC-Berkeley and Chicago Booth. Only Stanford and Wharton have reached a higher level; but only $ 5,000.
The report also shows that pre-MBA work experience may be more important than the b-school mark on your resume. The Kellogg MBA who earned $ 375,000 had nine years of professional experience before enrolling at Northwestern. Many MBAs will be encouraged to take the best MBA program their GMAT score will allow.
But what is clear from this report is that, in the United States at least, MBA rankings do not necessarily translate into higher income.
Other MBAs in the 2013 cohort received equally lucrative salaries. A private equity firm gave a graduate a base salary of $ 350,000, an MBA who entered the energy industry earned $ 225,000 and another earned over $ 200,000 for a role in transport services.
Kellogg’s MBAs who embarked on traditionally strong consulting, also earned base salaries of $ 175,000 – excluding signing and performance bonuses. Those who entered venture capital had similar salary success.
While Kellogg has always been very successful in terms of consulting employment, Kellogg’s report also suggests that those seeking a career in management consulting may do as well as those in the top five schools.
McKinsey & Company hired an impressive 46 Kellogg graduates this year. Another leading firm, Boston Consulting Group, hired 34, while Deloitte hired 34 and Accenture 13. Overall, eight of the top 13 hires were consulting firms, seeing the bulk ( 38%) of MBAs enter the industry.
In total, 84 percent of Kellogg graduates received job offers before graduation and nearly 95 percent received offers three months later. While this report does highlight how much an MBA program can increase your salary, what is more important is that the highest salaries can go to those who are not in the top schools. Is the name of your b-school now less important?