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Is the study adjusted for geography. I suspect a higher percent of Chicago grads work in the mid-west which has a lower pay scale than either coast.
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TOP SCHOOLS, TOP EARNINGS
One of the more surprising findings in the PayScale analysis was that the median cash compensation over the entire 20-year period, for all the schools in the study, was $2.5 million. And fully 37 of the 45 schools fall within $500,000 of the median—suggesting that the difference in lifetime earning power between MBA programs is less than many suppose. Only seven schools broke the $3 million mark, and only one of those—Harvard—comes close to $4 million.
One of the more surprising findings in the PayScale analysis was that the median cash compensation over the entire 20-year period, for all the schools in the study, was $2.5 million. And fully 37 of the 45 schools fall within $500,000 of the median—suggesting that the difference in lifetime earning power between MBA programs is less than many suppose. Only seven schools broke the $3 million mark, and only one of those—Harvard—comes close to $4 million.
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INSIDE THE COMPENSATION NUMBERS
For prospective students, the new research presents a conundrum. For one thing, the earning power of schools is in flux. The PayScale salary data reflect the compensation earned by graduates who are the product of programs that were vastly different from the ones we have today. Twenty years ago, the chances of seeing an executive teach a B-school class were nil, specialties that are common today had not yet been created, and Wharton had not yet cemented its academic reputation—in BusinessWeek's 1990 ranking it was awarded a "C" in teaching quality.
For prospective students, the new research presents a conundrum. For one thing, the earning power of schools is in flux. The PayScale salary data reflect the compensation earned by graduates who are the product of programs that were vastly different from the ones we have today. Twenty years ago, the chances of seeing an executive teach a B-school class were nil, specialties that are common today had not yet been created, and Wharton had not yet cemented its academic reputation—in BusinessWeek's 1990 ranking it was awarded a "C" in teaching quality.
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What's more, the median pay figures disguise what can be great variation in individual salaries. At Vanderbilt, for example, where the median cash compensation at the five-year mark is $93,400, about 10% of MBA graduates earn more than $146,000—about what the average Harvard grad earns. At Harvard, meanwhile, the highest-paid graduates have salaries that exceed $300,000 at the five-year mark.
Another complicating factor is cost. The top-ranked MBA programs have tuition and living expenses that can top $150,000 and after factoring in two years of forgone salary the total price tag can easily exceed $300,000. At big state institutions the cost might be half that amount or less. Is the more expensive program a great investment, or money down the drain?
Another complicating factor is cost. The top-ranked MBA programs have tuition and living expenses that can top $150,000 and after factoring in two years of forgone salary the total price tag can easily exceed $300,000. At big state institutions the cost might be half that amount or less. Is the more expensive program a great investment, or money down the drain?
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FALLOUT FROM THE WALL STREET CRISIS
Will the schools that fared well in the PayScale analysis of the last 20 years fare just as well over the next 20 years? A lot depends on the unraveling economy, and a lot depends on the school. If financial services continues on its downward spiral or becomes permanently less profitable through regulation, schools like Wharton, which sent 47% of its students to financial services last year, will be far more exposed than schools like Kellogg, which sent about half as many to Wall Street.
Will the schools that fared well in the PayScale analysis of the last 20 years fare just as well over the next 20 years? A lot depends on the unraveling economy, and a lot depends on the school. If financial services continues on its downward spiral or becomes permanently less profitable through regulation, schools like Wharton, which sent 47% of its students to financial services last year, will be far more exposed than schools like Kellogg, which sent about half as many to Wall Street.