The Value of an MBA

Salary Increase

Bloomberg took its student survey data from its ranking published late last year to track returns. For the MBAs who ventured into new fields, the median pay increase was a whopping $55,000 toward a salary of $120,000. That translated into an 85% increase in pay at a time when wage growth for managerial and professional employees has been relatively stagnant. MBAs who returned to their industries actually reported slightly higher starting pay–roughly $122,000–but the bump in salary was less, a median $47,000 increase because pre-MBA pay was higher at a median of $75,000 instead of $65,000 for those who did the switch (See Payback On The MBA: A $55K to $47K Bump).

The Financial Times data further makes the case in favor of an MBA degree.
The FT broke the alumni pay numbers out by world regions which showed that some of the highest returns were reported in South America. For alumni who entered their MBA programs at an age of 29 and 30, the salary increase was 131%, or $96,000 over their pre-MBA pay.

In North America, the FT said that alumni who entered their MBA programs at an age of 24 or below, reported salary increases of $67,000, a whopping 137% increase over their pre-degree pay. For graduates who started their MBA at 25 and 26, the salary rise was exactly the same, $67,000, representing a 110% increase over pre-MBA pay. For those aged 27 to 28, generally the sweet spot for a two-year MBA program, the increase was $64,000, or 89%.

Source:  Poets and Quants