MBAs amongst the highest paid postgraduates in the world.
 Globally speaking MBA salaries have been on an exponential rise. Although the recent recession in the global economy has taken its toll on the graduating MBA class of 2007-2008, they will eventaull settle in relatively higher paid jobs than their peers who are less educated. The recent few months has seen renewed faith in consumer spending and lower jobless claims. And the prospects will stand much brighter tomorrow.
A survey carried out by the Association of MBAs (AMBA) reveales that graduates recieve an 18% increase in their base salary after they graduate, and in a span of 3 to 5 years thereafter, this number is more than 50%! But this is true mostly of those being promoted to a senior managerial role and for those especially being offered a seat in the Company Board. Clearly, companies want their MBAs to increasingly don the entrepreneur's role at a faster rate.
Globalisation has benefited MBAs from across the world. Salaries of MBAs from the US, Europe, and Asia at Fortune 100 companies have increased more than ever. According to an article in TopMBA, global corporates are recruiting MBAs belonging to different nationalities, and are handing out attractive salaries to employ them in their key geographies. Across the world, MBA salaries have reached a common platform for pharmaceutical companies, biotech industry, green jobs, IT, and consulting firms today.
In 2004, the average MBA salary from an AMBA accredited institution stood at an average of 75,000 pounds for a full-time, taught, Master’s level programme. Besides, the average difference in salaries pre and post MBAs is more than 100%. 2006 saw this number hovering between 95,000 and 110,000 pounds for graduates from the best business schools.
According to financial times, the median pay package for graduates fresh out of the best b-schools such as London Business School in 2008 is between $120,000 and a whopping $145,000. Apparently, the survey also reveals the best salaries come from jobs obtained through contacts. So it becomes imperative that you have a strong network in your alumni to avail some of the best opportunities!
Industries such as investment banking, brokerage, securities, consulting and entertainment/media are the most rewarding management fields to work in. According to the Journal, management consulting firms offer the most generous MBA pay packages.
A look at the Latin American nations reveals that MBAs here earn roughly $50,000 a year in contrast, but are ironically better off than their their North American or European counterparts as their cost of living is about 50 to 60% lower.
The picture, however, is not as bright for Asia. Barring the developed South Asian parts such as Singapore, Hong Kong, and Malaysia, where MBAs are drawing up to $75,000 in salaries, MBA graduates from developing nations of India and China come for really cheap. Technology firms are spreading themselves by setting up offshore production and development centres, and are hiring MBAs here for as low as $20,000. While this considerably reduces costs for such companies and makes such countries attractive investment zones, the meagre start salaries are pulling down the Asian MBA earning potential on the global scale.
There are two interesting inferences that can be drawn from such surveys; one is that the variable component of pay that remains the motivating factor for many MBAs. Besides a signing bonus, which can be up to 10% of the base salary, MBAs may now be able to also ask for a performance bonus of 15%. Financial service and investment firms are doling out generous rewards - first year MBAs may get anywhere between $40,000 and $100,000 as bonus alone. The second interesting inference is that the gender factor also comes into play since male MBA graduates earn up to 10,000 pounds more than their female counterparts. Within the UK itself, the base salaries for those working in the North East is considered to be the highest and for those in the South is lowest, with an incredible 30,000 pounds + divide between the two.
All in all, the demand for MBAs, especially from recognised business schools with accreditations, has increased potential to earn among the highest salaries as much as it has increased employability the world over.
Sources:
http://www.topmba.com/bschool/articles_main.lasso?id=113&article=113&area=careers&page=salaries&-session=topmba:377A6FB4F3712CEBB04E935A7036CDA9
http://www.payscale.com/salary-survey/vid-3144/fid-6886
http://www.admissionsconsultants.com/mba/compensation.asp
http://www.mbaworld.com/index.php?pressid=38&mm=0&sm=0&content=pressdetail
http://www.sbs.ox.ac.uk/NR/rdonlyres/E1B049AF-9757-4F23-8D6D-5DF56DECD704/0/PlacementReport20034.pdf#search=%22UK%20mbas%20%2B%20salaries%20%2B%20statistics%22
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