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US and European MBA recruiters reported average MBA salaries of US $90,250 in 2006, according to the QS TopMBA Recruiter Survey 2006, but other regions of the world are catching up. Over time, it appears that MBA salary differentials between sectors and
geographies are diminishing, and may even disappear, as companies vie for MBA talent in all corners of the world.

Many multinational companies co-ordinate recruitment on a global level, and do not want to drive top candidates away from key geographies because of a salary differential. As international companies set up operations in emerging markets, they are increasingly willing to pay more for MBAs, who they see as critical for building a foothold in each region. For example, it is likely that MBAs in new EU states like Bulgaria, and Romania will see a rapid jump in salaries from their current low levels.

As the QS World MBA Tour brings international business schools to international markets, it is also facilitating the future recruitment of local talent by global employer, at global salaries.

Benchmarking by Sector

In 2006, average consulting base salaries in North America and Europe at US $94,000 have, once again, overtaken those in financial services at US $93,800. After many years of the base salaries in consulting surpassing those in financial services, financial services edged ahead in 2003, again in 2004, but has fallen behind again since 2005. This reinforces the view that both sectors are vying for the same talent are setting salaries relative to each other.

Banking salaries for fresh MBAs reached as high as $155,000, amongst this year's respondents and as low as $20,000 in some emerging markets. Consulting salaries for fresh MBA hires reached a high of US $145,000 and a low of $32,000 in emerging markets. These salaries look unlikely to slacken off, given the forecast increases in demand for MBAs by consultants and banks over the next few years.

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Source: -
Nunzio Quacquarelli
Website: www.topmba.com