Converging MBA Salaries Around the World

- by Nunzio Quacquarelli *

Previous

Page - 2

There also appears to be a relationship between general industrial and technology salaries. During the dotcom boom of the late nineties, technology salaries were consistently 10% above industrial salaries. But in the subsequent technology crash, industrial salaries jumped ahead, but have now fallen behind again as technology firms around the world start hunting for talent.

The chart below tracks MBA salaries in the US and Europe from 1999 to 2006 by key MBA recruiting sectors. This chart reveals the long-term global increase in salaries in consulting, finance, technology and general industry, since 1993.

Source: TopMBA.com Recruiter Survey 2006

MBA Salaries in US & Europe by Industry 1996-2006 (US$)

Consulting firms are competing by offering higher salaries than banks. However, many MBAs are being recruited by banks at present. Why? The larger bonuses payable by banks, and investment banks in particular, ensure that they offer the greatest overall compensation for the first year out of business school, averaging US $146,500 in 2006. MBAs who choose to join banks are judging that the financial sector boom will continue and banks will continue to pay high bonuses resulting in higher overall compensation. Such bonuses may not last, however. We saw in 2001-2004 that banking bonuses for MBAs fell to less than $15,000 per annum compared to the current high of $53,000.

Next

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