MBA Salary

Question

Looking at the current employment reports, the newly minted MBA salary has gone up significantly in the recent year. Some of the numbers looks very impressive.

https://www.msn.com/en-us/news/msn/the-t ... ar-BBJMukU

Any current students have insights on the details behind these numbers? Is it an accurate representation on the expectations at your schools?

Sometimes the finer details get lost in the aggregate numbers: post-MBA industry shift, geography shift to higher paying regions, etc. And the MSN article might have done some funny math. For example, Wharton's official report: https://statistics.mbacareers.wharton.u ... _FINAL.pdf

bb · Answer

Interesting article (I had to search for it on the internet since the MSN news link no longer works - why is that I wonder???) Anyway, it appears the source is the SOFI ranking/list: https://www.sofi.com/blog/sofis-annual- ... -rankings/ Where a top 20 list includes University of Pittsburgh

- am I the only one who thinks it is odd? Wharton seems to be leaps and bounds beyond all other schools. I am guessing the data is only a sample that's somewhat limited. The biggest limitation i would say is the lack of international graduates since SOFI would not be lending them, thus the ranking is likely based on 10-20% of the class is my conclusion, based solely on those who have refinanced their loans with SOFI. EDIT: In addition, I feel that ranking does not actually imply or reflect the latest graduates salaries - this is simply based on the mix of the refinance applicants who may have graduated years ago or just now and looking to refinance their student debt. It seems the top salary jumped $50K in the last year from 173 to 224. I wonder if that is total income from W2 that does include bonus, etc. P.S. On my end, I can report I got the good old 3% this year which seems like a drop in a bucket but it adds up over the long haul.... that's what i keep telling myself at least

mvictor · Answer

At least you got an increase! I got nothing, and continue to be paid on 1099

Damn, I like those numbers...but i guess it all depends on student's background and field in which they are.

asimov · Answer

The article does feel a bit sensational. I also checked historical employment reports and compare them as apples to apples as possible (same school, same sector), it seems that the new MBA salary grows faster than the standard 3% CAGR. This would create the scenario, where less experienced hires getting paid at the same or more than more experienced hires with more experience. Also an interesting dynamic at work.

From my observation, the average annual raise is ~2.5-3.5% at the same role. The spread between top and average performer is minimal. There isn't much of a bump on base salary due to promotion. The bump comes in the format of higher bonus eligibility.

bb · Answer

The problem lies in the corporate budgeting for compensation. My department gets an automatic budget that equals about 3% of total payroll and then it is my responsibility to allocate it, so i can grant someone 5% (I believe they do limit me at 5 or 6%) but then I would have to give others a 1% or 2% raise. One year, I have over-allocated because the system let me do it but i think it got reversed somehow. Ultimately one person had to stand out quite a bit and another to suck quite a bit to warrant this raise, so it is ultimately impossible in corporate america to get a raise unless it is a promotion (even in that case, many companies have a rule that a promotion raise may not be more than 10% or 20%). Leaving the only other option - job hopping.

asimov · Answer

So much misalignment of incentives within the corporate world due to HR policy, some are so sad, you can only laugh it off. The worst may be due to difficulties in culling low performers, they get PROMOTED out of the department in order to have the employee to be someone else's problem....

mvictor · Answer

damn, I got a whole new department on my shoulders, while the person who was managing it got fired. I did not even get a raise at least to match the same salary that that person had... and I have to deal with a s..load of other stuff too... It is so unfair

asimov · Answer

The reward for good work is more work...

mvictor · Answer

haha, so true in my case...workload for that department more than tripled within a year.

MBA Salary

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