Impossible! MBA average compensation 10 years in. Any help?
I recently read the below article showing that the average compensation for someone 10 years after his MBA is only $200K, and this for top schools like HBS! Same for law school
https://www.cnbc.com/amp/2018/03/08/how-much-grad…
https://www.google.it/amp/s/www.cnbc.com/amp/2018…
How can this possibly be? This is really lower than expected given that 2/3 of MBAs go into either finance or consulting. Is someone looking for a way to eventually earn $1m+ a (or even $5m+) better off looking at other careers path such as starting a business or real estate development? I am really surprised since these grads are probably some of the smartest and hardest working individuals in the planet. Thank you!
EDIT: I have just checked it out and actually the numbers is inclusive of the bonus. Check out the link below:
Don't worry too much. Remember that the average includes people who burned out from the top careers and "settled" for a 6 figure salary in an easier position wherever they could get it. You should also remember that with financial data there is an 80/20 effect (20% of MBAs get 80% of MBA earnings) so that's yet another dimension that makes averages not trust worthy. Read that 200k figure as "Even if I am horrible in my job and burn out after 2 years, I'll still be a millionaire".
Thanks for the reply! But still, these are super smart people from HBS, I do not see why there would need to be so many burned outs
Because there are less high-powered positions than there are super smart people from HBS.
Nobody’s going to point out these articles are using medians not averages? Just saying, probably way different considering the potential rightward skew.
1) A lot of these surveys consider ONLY guaranteed compensation, and therefore ignore annual bonuses, carry, and things of that nature. 2) Many people from top programs are internationals. In nearly every market around the world, compensation is lower than in the U.S.! Graduates that move to South America, Africa, and even Europe will likely reduce the median compared to if they worked the same job in the U.S. 3) I'm not sure how they account for women who leave the workplace and become stay-at-home moms, or MBA-moms (for those unfamiliar with the term, it isn't unusual for a former post-MBA consultant to remotely do part-time consulting work after having kids). 4) Many successful entrepreneurs take very low salaries and make their money in equity. They could be killing it and the numbers wouldn't show in these studies.
Hope this was helpful.
although this 80/20 rule gets you the same average which doesn’t support the case
OP does not understand the concept of averages or any sort of nuances.
Thankfully we have CompBanker
What if I told you that most of these grads are entitled shitheads that get a reality check once they leave the safe confines of the MBA campus? Source: was an entitled, smartest and hardest working "elite MBA" shithead myself.
Please do an AMA.
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