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The Trump Effect

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The Trump Effect [#permalink]

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New post 11 Feb 2017, 03:05
I have a question pertaining to the impact of the new proposed rules for H1B immigration reforms. Currently at all top schools, at least at top ten schools, the average pay hovers around 130,000 USD, which is also the benchmark figure proposed by the democratic leader. It is also said that companies do provide signing bonuses, variable components and other benefits like stock options to the MBA graduates. However, the employment reports always state the base salaries.

Now, my question is, whether the companies generally convert the other components in to cash equivalent if a person asks for it? To elaborate, if I graduate and I am offered a salary of USD 110,000 and other benefits equaling 30,000 USD, whether the company would provide me a salary of 140,000 USD instead to allow me to be eligible for an H1B? I don't think it should be a problem, but an opinion from experts who have completed the MBA and are currently working in the industries would be highly appreciated.
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New post 16 Feb 2017, 11:42
Hi there,

I wouldn't get too hung up on the specifics of the bill just yet. It's only been introduced in the House of Representatives and will have to go through thorough vetting and changes (through the House, then the Senate, then the President) before it's signed into law. Note that a similar bill has been introduced before in the House and did not get very far. With that said, it's a new administration now.

Have you read this analysis? https://gmatclub.com/forum/h-1b-visa-changes-a-potential-boon-for-mba-applicants-233284.html I thought it was pretty good and actually provides evidence for how the proposed changes could benefit MBA graduates.

But getting back to your question, no, I don't believe that companies would be willing to convert your variable compensation into salary. It just doesn't work that way. If an employer wants to sponsor your visa, they'll make sure your offer meets the criteria.

I hope that helps!

Best,
Melody
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Last edited by VantagePointMelody on 16 Feb 2017, 13:07, edited 1 time in total.
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Re: The Trump Effect [#permalink]

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New post 16 Feb 2017, 12:02
I did go through the analysis but I believe that the analysis is highly skewed towards the benefits the law will bring. There are several loose corners which need to be corrected before it can be termed as an unbiased analysis. To add to it the fact that the analyst benefits from more people still going for that coveted MBA and hence the GMAT and hence the GMATprep company, makes the analysis something that should be taken with a grain of salt.

Coming to your response, I infer that you are suggesting that the companies will increase their offer to match the criteria thereby increasing the payout to foreign MBAs. Considering the fact that in general average payout to international students is less than or equal to the that to domestic students, it'd not make much economic sense to increase the pay of international MBAs who already need additional expenditure in the form of H1B sponsorship fees, attorney fees, and other miscellaneous expenses. But then, it all depends on how badly the organization want the international students, and with the current politics whether they'd like to miff the president-elect Trump and his supporters.
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New post 16 Feb 2017, 13:07
Sure, that's one way to look at it. Or you can look at the analysis as one of many valid points on a topic that will continue to evolve and raises more questions than answers at this point. My best advice is to "wait and see". These things take months if not years to play out.

Back to post-MBA recruiting. At the end of the day, if an employer sponsors H-1B visas and wants you badly enough, they'll find a way to make that work. I highly doubt that they'll raise your salary above that of your peers (most H-1B visa hiring industries such as consulting and banking hire into "programs" where all graduates start at the same salary) but I'm also not convinced that they'll have to. Of the two proposals on the table right now, one has a sliding scale salary "floor" for exempt status where the $130K number you've been seeing all over the place only applies to "Computer and Mathematical Occupations" (you can read the language of the bill here: https://www.congress.gov/bill/115th-congress/house-bill/670/text) The other bill proposes a flat $100,000 floor (https://www.congress.gov/bill/115th-congress/house-bill/170/text), which is very reasonable for a post-MBA role. I'm not going to comment on the politics of the situation :)

I'm assuming this is weighing on your decision to pursue an MBA in the US?
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Re: The Trump Effect   [#permalink] 16 Feb 2017, 13:07
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The Trump Effect

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