MBA sponsorship of MBB consultants

Does anyone know any details of the sponsorship contract for an MBA?

Is it a full gift or some sort of loan? On some forums I read that it is supposed to be a gift. However, why wouldn't all people then take it? Isn't it unfair to people who don't pursue the MBA if it is indeed a gift?

6 Comments
 
Best Response
  1. Is it a gift or a loan?

It is a "gift" (both the tuition payment and stipend), BUT there are strings attached. Primarily there is a lock-in period for how long you have to work at the company after returning (generally 18 months) or you have to pay back the tuition costs. Also, there are some other limitations (e.g., cannot work for a competitor for an internship) and such that are in the contract as well.

  1. Why wouldn't all people take?

Well, an individual may not want to get an MBA, for plenty of valid reasons, and therefore not wish to pursue sponsorship. Even though the MBA is "free" the opportunity cost is 2 years of high-income work and in-market learning experience. Depending on your long-term plans, that work experience could be more valuable than the MBA.

  1. Is it unfair to those who do not go to business school?

As someone in this boat, I tend to think it is fair. Given the opportunity cost logic above, you do fine staying. That being said, there could be alternative self-education programs (e.g., executive presence coaching) that they could support or allow you to reallocate some of those funds towards in a perfect world.

 
"Banking01"

@devildog2067 Very simple answer: sponsorship = extra salary. So if you take it you get more than the person who doesn't take it.

Very dumb answer. By this argument, turning down the sponsorship = even more salary AND tenure. Instead of going to b-school, someone could stay - gain 2 years of tenure and pocket 60K a year in incremental savings instead.

Time has value, and not everyone views the the same trade off. But the dumbest part of this whole argument is there could somehow be a lack of fairness when you're given full ability to choose between two options.

 

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