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Yahoo
5 days ago
- Business
- Yahoo
What is the average MBA salary?
The average MBA graduate can expect to make six figures as their base salary, with the average salary coming out to around $120,000 annually. The average MBA salary varies by state, with Washington, New York, Massachusetts, Alaska and Vermont earning the highest wages. Your exact salary will depend on your location, your job role and experience. If you're considering or pursuing a Masters of Business Administration degree (MBA), the investment could be worth it. An MBA is one of the best-paid graduate degrees you can receive since it could lead to a six-figure salary. That said, how much an MBA graduate earns depends on several factors, such as where they live, where they graduated from, what kind of industry they work in, as well as experience and any specialized licenses gained. According to the Graduate Management Admission Council's 2024 Corporate Recruiters Survey Report, the average starting salary for U.S. MBA graduates is around $120,000, whereas PayScale estimates the average salary for an MBA graduate to be $100,000. An MBA salary depends on four things: Where you live Which school you attended Your exact job Experience MBA graduates take on a wide variety of roles from product developers to financial officers or chief operating roles. The higher you climb, the higher your salary will be. Below are some of the highest-paying jobs for MBA graduates by industry: Industry Median MBA salary Legal and professional services $225,000 Consulting $190,000 Financial services $175,000 Manufacturing $165,000 Technology $162,750 FinTech $157,500 Your exact MBA salary is set based on a variety of factors, and research has shown they can significantly affect how much you get paid. How many years you've spent in your role directly correlates with how much you get paid, but even new MBA graduates can make six figures. Generally speaking, the more professional experience you have, the higher your salary. The following table shows how an MBA grad holder's salary tends to increase over time: Years of experience Median MBA salary 4-6 years $122,000 10-14 years $166,000 15+ years $200,000 While the gender pay gap has improved over the last 57 years, it persists. Women continue to earn less than men for doing similar jobs. Right after earning an MBA, the average pay for women in their first post-MBA job was $131,449 compared to an average pay of $140,007 for men — an $8,558 gap, according to a 2024 Forté Foundation online survey. According to the Forté Foundation's research, the gap widens even further when the MBA survey participants were asked to reveal their current salaries. While the average current salary for males was $216,487, the average current salary for women was $179,987 — a $36,500 difference. Level of experience Men Women Pre-MBA $80,852 $86,338 First job post-MBA $140,007 $131,449 Average current salaries $216,487 $179,987 Location plays a big role in how much you can expect to earn. Cities with higher living costs tend to have higher average salaries, while states with lower living costs tend to have lower average salaries. The demand for MBA roles in a state can also impact the average salary. For example, regions with high demand for MBA-level jobs often have higher average wages. Below are the states with the top-five highest, mid-range and lowest average salaries: State Average MBA salary Washington $187,300 New York $180,923 Massachusetts $180,607 Alaska $178,097 Vermont $175,833 State Average MBA salary Illinois $160,250 Maine $160,113 Wyoming $158,959 Nebraska $157,674 Indiana $157,362 State Average MBA salary Louisiana $141,414 Georgia $139,638 Arkansas $136,747 West Virginia $126,026 Florida $123,582 Different MBA programs may foster more knowledge and skills that allow you to go after high-paying roles at the companies you apply for. Accredited programs will typically hold more weight than nonaccredited programs. If you go to a program that has a network of successful alumni, you have a better chance of earning a higher salary since they tend to hire or start new things with other alumni. Students who graduated in 2024 with MBAs from these schools had the highest average starting salaries: School Salary Stanford University $221,471 University of Pennsylvania (Wharton) $213,129 University of Chicago (Booth) $212,211 Harvard University $210,125 Massachusetts Institute of Technology (Sloan) $205,270 Dartmouth College (Tuck) $204,090 New York University (Stern) $203,176 Columbia University $202,234 Northwestern University (Kellogg) $202,225 Cornell University (Johnson) $200,405 Ultimately, the question of whether an MBA is worth it depends on your career aspirations and how much you may need to borrow to pay for your program. According to SoFi, the average MBA graduate takes on $81,218 in debt just to complete graduate school. Nellie Gaynor, an IvyWise MBA and graduate school admissions counselor, thinks an MBA from a top-tier school is definitely worth it: Studies back up Gaynor's observations. The Graduate Management Admission Council's 2024 Corporate Recruiter Survey Report shows that U.S. MBA graduates' starting salaries are roughly 1.75 times higher than those of bachelor's degree holders. Keep in mind: Some high-level business careers don't require an MBA. For example, you don't need an MBA to become a CEO. As a result, it's important to consider whether you can earn a higher salary without earning a degree. If you're unsure whether an MBA would help, speak with your current employer or individuals who work in your desired career field. Earning an MBA could lead to a significant increase in your salary, depending on where you live. Some states have average salaries close to $190,000, though you should take into consideration years of experience, what type of job you pursue and other factors that may impact your earning. Before you shell out thousands of dollars on an MBA program, weigh the pros and cons to see if it's the best career move for you. Which MBA gives the highest salary? Your potential MBA salary depends on which school you attend, where you live and the field you choose. According to average salary data, those who work in legal and professional services have the highest salaries. The state with the highest salary for MBA graduates is Washington. Stanford University boasts the highest salary for graduates. What is the average lifetime salary for an MBA graduate? In general, salaries increase the longer someone works in the field. People with four to six years of experience make a median salary of about $122,000, while people with 15 or more years of experience earn a median salary almost double that at $200,000. If you factor in the total years of experience, the median salary comes out to be about $133,000 per year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
27-05-2025
- Business
- Forbes
Getting An MBA Boosts Earnings. It Won't Close The Gender Pay Gap
While the gender pay gap is just 6% in first post-MBA jobs, it tends to rise swiftly — to about ... More 17%—several years after graduation. Getting an MBA tends to boost earnings significantly for both women and men, but it's not helping to close the gender pay gap, new research shows. A survey of more than 1,000 graduates from elite MBA programs across the U.S., Europe and Canada, found that in the first post-MBA job, women's salaries, on average, rose 52% to $131,449 from their last pre-MBA role. Men's, meanwhile, surged 73% to $140,007. Men who did not identify as belonging to an underrepresented minority group, enjoyed the biggest salary jump, of 74%, on average. Women who identified as belonging to an underrepresented minority group saw a 57% jump to $128,860, while women who did not experienced a 51% increase to $132,304. The research, conducted by the non-profit Forté Foundation, also found that while the gender pay gap is just 6% in first post-MBA jobs, it tends to rise swiftly — to about 17%—several years after graduation. This mirrors the widening of the gender gap across border populations. In the U.S., for example, women aged between 25 and 34 earned an average of 95 cents for every dollar earned by a man in the same age group – or a 5-cent gap—last year, according to the Pew Research Center. For workers of all ages, the gap is around 15 cents. Forté in its survey—conducted at the end of 2024—also found that women with MBAs lagged their male counterparts in terms of the number of direct reports, distance in their current level from a CEO role, and amount of budget managed. And it established that while many MBAs said that they had changed jobs in order to become more senior, women were more likely to have done so than men. 'A third of MBAs of both genders say they have to change jobs to advance and this is much higher for women and minorities," commented Forté CEO Elissa Sangster. 'Clearly, we can do better than having MBAs believe they have to move out in order to move up.' In terms of career satisfaction, the research showed that women MBAs were trailing their male peers, too. They reported lower levels of satisfaction than men across all five measures including current role, current organization, current level, number of people managed, and current salary. Over the last two years, however, overall satisfaction has declined for both women and men.
Yahoo
22-05-2025
- Business
- Yahoo
MBA Pay Gaps, Promotion Disparities & Leadership Barriers Persist For Women & Minorities: Forté Study
'A third of MBAs of both genders say they have to change jobs to advance and this is much higher for women and minorities,' Elissa Sangster, CEO of the Forté Foundation, says of the nonprofit's findings in its newly released report An MBA still pays off — but for women and underrepresented minorities, the returns come with a ceiling. A new report by the Forté Foundation reveals that despite significant post-MBA salary bumps, women and minority graduates continue to face stark disparities in pay, promotions, and access to leadership. The findings are part of Forté's 2024 MBA Outcomes study, released today (May 22), which surveyed 1,047 MBA alumni from 69 business schools. Respondents, 79% of whom were women and 29% from underrepresented minority backgrounds, reported strong initial salary gains following graduation. But the gender pay gap widens as careers progress, with women consistently lagging men in promotions, management responsibility, and proximity to the C-suite. 'Leadership barriers for both genders have climbed in the last two years, due primarily to lack of a formal career development plan and more women and minorities don't have a sponsor,' says Elissa Sangster, CEO of the nonprofit dedicated to advancing women in business through access to education, career support, and a global community. 'A third of MBAs of both genders say they have to change jobs to advance and this is much higher for women and minorities. Clearly, we can do better than having MBAs believe they have to move out in order to move up. 'We create five-year plans for a business, why not employees?' Forté's study shows that women see an average salary increase of 52% in their first post-MBA role, rising to $131,449. Men, however, see a 73% increase, reaching $140,007. Over time, the pay gap expands. Women in current roles average $179,987 — a 108% increase from pre-MBA salaries — while men average $216,487, a 168% jump. Even after accounting for a two-year age difference, the gap persists. Elissa Sangster, executive director of the Forte Foundation: 'If companies want to retain MBAs, they need to let them know why they belong, reiterate the value they bring, and help them to create a roadmap to advance' Sangster points to several key structural and cultural issues that contribute to this persistent disparity. 'There are at least four structural and cultural changes that could make an impact,' she tells Poets&Quants. 'Lack of a formal career development plan is one stumbling block to advancing in business. Our research found that both men and women cite this as a problem that has grown in the last two years, but it's a bigger problem for women and minorities.' She continues: 'Another obstacle is not having a sponsor, which is a much bigger issue for women and minorities, our research revealed. Women know how important a sponsor is and recent research found that 73% of women who have a sponsor say it helps them to advance faster.' Sangster also calls for companies to conduct more comprehensive compensation reviews. 'A third focus area is to create compensation audits to ensure salary equity but to also look at bonuses, stock options and other financial incentives. Our research found that a greater percentage of men than women value stock options and other financial incentives, but that doesn't mean women don't prioritize them, too,' she says. Cultural shifts in performance evaluation are also necessary, Sangster says. 'Culturally, provide regular actionable feedback and remove bias from performance reviews and in considering women for promotion,' she says. 'Our research found that women are promoted less frequently than men, have fewer direct reports, and are further away from becoming CEO than men. And women are more likely to say they have to leave their job in order to advance.' The disparity in promotions and leadership responsibility backs up Sangster's observations. Men in the survey report receiving 2.3 promotions post-MBA, compared to just 1.4 for women. They also manage nearly twice as many direct reports and are significantly closer to the CEO role. Only 6% of women manage budgets of $50 million or more, compared to 12% of men. To address these disparities, Sangster advises companies to implement structured long-term development plans for their people. 'I'd advise companies to create 1-, 3- and 5-year career development plans for all their people. They have business development plans but are coming up short in doing the same for employees,' she says. 'Another recommendation is to focus more on sponsorship programs and ensure there is equity in terms of who participates in them. 'If companies want to retain MBAs, they need to let them know why they belong, reiterate the value they bring, and help them to create a roadmap to advance.' Business schools, she adds, can help equip students to better evaluate employers and advancement opportunities. 'Business schools need to teach students how to navigate the interview process to ask about company career development plans to help them to pick the best employer to ensure career progress — and to continue to compare employers and ask questions after landing their first post-MBA job,' Sangster says. But she stresses that alumni must take initiative as well. 'This is a two-way street and MBA graduates and alumni need to ask questions throughout their career. Does the company have written and transparent guidelines on how to reach the next level? Do they have sponsorship programs available to all employees to help them advance? If there is no sponsorship program, how do they set up their people for success?' For those without access to formal structures, informal networks can be key. 'If a company does not have a sponsorship program, create one informally by connecting with someone at their employer who is an alum of their school. Our research found more than a third of MBAs say they have to leave in order to advance, so it is critical to prioritize networking 10 years out and longer, not just in the early years post MBA. Those connections can be the key to identifying opportunities to move up,' she says. One area where women are leading is in the use of AI to support career development. According to the report, women are more likely than men to use AI to optimize resumes (64% versus 51%), improve cover letters (59% versus 41%), and practice interview questions. Women are also more likely to use AI on the job for continuous learning and identifying automation opportunities. Sangster believes these efforts need greater institutional recognition. 'Most companies do provide some kind of learning and development platform or resources for their employees. But my guess is that a lot of them don't formally track it in a way that gets incorporated into performance reviews, feedback, or is included in criteria for promotion,' she says. She urges companies to close this loop. 'If learning and development is important enough to an organization that they are providing resources or funds to employees, then they've got to come full circle with it. Completion of those courses or skill development programs has got to make its way into performance reviews and employee evaluations for a promotion. If you are promoting people in your organization who aren't investing in their ongoing learning and development, then it's likely you are making a mistake,' she says. The study also touches on shifting workplace values. Remote and flexible work arrangements remain the top-rated benefit for both genders, but priorities diverge in other areas. Women value time-related benefits like paid time off (54% versus 40%), while men are more likely to prioritize financial perks like stock options (47% versus 29%). Finally, the study exposes a striking perception gap in views on workplace equality. Men are significantly more likely than women to believe gender parity has been achieved, with men scoring 3.11 out of 5 when asked if equality exists in the workplace. Women score the same question at just 2.18. The gap extends to perceptions of pay parity and optimism about the future of business, suggesting that cultural awareness is just as critical as compensation audits and career ladders. DON'T MISS The post MBA Pay Gaps, Promotion Disparities & Leadership Barriers Persist For Women & Minorities: Forté Study appeared first on Poets&Quants. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
