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28 March 2024

Salaries of fresh MBAs up a huge 160%

MBAs still find themselves getting pay hikes. Picture used for illustrative purposes only. (AGENCY)

Published
By Shuchita Kapur

For three years now, professionals have been moaning about stagnant pay levels, no bonuses, less perks and a dull job-front but fresh graduates from top business schools have seen their starting salary surge by as much as 160 per cent over the past year.

According to an Emirates 24|7 analysis of the Financial Times ranking for top 20 business schools in the world for 2010, the average pay hike for the graduates from these schools saw an increase of 119.7 per cent over last year, when most companies were resorting to cutting costs on human resources.

The No. 12 ranked Indian School of Business in Hyderabad saw the maximum increase of 166 per cent over last year. This was followed by IE Business School Spain, registering a 159 per cent hike over 2009. The world’s No. 1 ranked B-school, London Business School, saw an increase of 124 per cent.

Leading business institutes from the United States – Wharton, Harvard Business School, Stanford University GSB, Columbia Business School, MIT Sloan School of Management, University of Chicago: Booth, New York University: Stern, Dartmouth College: Tuck: Booth, Yale School of Management and Duke University: Fuqua – all saw more than 100 per cent increase over last year.

The only exception that saw an increase of less than 100 per cent was IMD of Switzerland.

Meanwhile, the average weighted salary of these top institutes is a little over than $142,063 per annum. The highest weighted salary is for Stanford University GSB at $164,863, closely followed by Harvard Business School at $161,887, University of Pennsylvania: Wharton ($160,848) and Columbia Business School ($160,679).

The schools from the US see the highest salary levels. Hong Kong UST Business School in China registered the least weighted salary of $115,535. Moreover, a good majority of graduates from these institutes were employed within three months of graduating.
According to BusinessWeek's latest rankings of international B-schools according to return on investment (RoI), IE Business School tops the sweepstakes with a post-MBA pay increase of $96,500 per year.

Considering that an MBA at IE Business School costs $151,450 (including fees, living expenses and median foregone salary for the duration of the course), it takes an average graduate fro IE Business School just 1.57 years to recoup B-school costs.

On the other hand, it would take a fresh grad from Chicago (Booth) school a staggering 11.33 years to recoup B-school costs as the total cost of doing an MBA from the school worked out to over $300,000 compared with a post-MBA salary increase of just $27,000.