Chicago Booth Tops MBA List For Total Compensation And ROI

ERRATUM: AMENDED TOTAL COMPENSATION FOR KELLOGG SCHOOL OF MANAGEMENT AND ROSS SCHOOL OF BUSINESS IN TABLE 1

Given the time and financial investment required for a MBA degree, prospective students should look into return on investment for each of the options being considered.

Emolument.com has analysed 1,020 salary data of MBA holders who graduated in 2011, 2012 and 2013 to calculate the return on investment and highest earnings 3-5 years after graduation.

Rank School Median Salary Median Bonus Total Compensation
1 Chicago Booth School of Business £114,000 £53,000 £167,000
2 Columbia Business School £114,000 £46,000 £160,000
3 Judge Business School £117,000 £39,000 £156,000
4 Harvard Business School £106,000 £36,000 £142,000
5 Wharton School £104,000 £30,000 £134,000
6 Stern School of Business £106,000 £27,000 £133,000
7 Kellogg School of Management £106,000 £66,462 £125,000
8 Johnson Cornell University £96,000 £19,000 £115,000
9 INSEAD £90,000 £16,000 £106,000
10 Ross School of Business £94,000 £64,500 £104,000
11 London Business School £86,000 £17,000 £103,000
12 HKUST £82,000 £16,000 £98,000
13 Warwick Business School £82,000 £5,000 £87,000
14 Manchester Business School £74,000 £10,000 £84,000
15 Said Business School £75,000 £8,000 £83,000
16 HEC Paris £71,000 £8,000 £79,000
17 IESE £67,000 £11,000 £78,000
18 NUS £63,000 £12,000 £75,000
19 Cass Business School £60,000 £10,000 £70,000
20 IE £65,000 £4,000 £69,000
21 Baruch College £64,000 £4,000 £68,000
22 ESADE £61,000 £5,000 £66,000
23 Hult International Business School £49,000 £3,000 £52,000
24 EDHEC £51,000 £0 £51,000
25 ESSEC £48,000 £2,000 £50,000

Table 1. Based on median annual total pay (salary + bonus) for class of 2011,2012 & 2013

USA ahead of the game. Chicago Booth School of Business holds the first place on the table, thanks to relatively high bonuses. As expected, eight American institutions feature in the top 10, but Cambridge gets a very honourable third place and France still manages to hold ninth place with INSEAD. Oxford is further down the list in 15th place. A larger proportion of Cambridge MBA graduates work abroad – especially in New York, Hong Kong and Singapore – while Oxford MBA graduates are more likely to remain in the UK earning less than their American peers.

 

 

chicago booth mba
chicago booth mba

 

Rank School Total Compensation Cost of the MBA ROI
1 Chicago Booth £167,000 £51,000 2.3
2 Warwick Business School £87,000 £35,600 1.4
3 NUS £75,000 £35,000 1.1
4 Baruch College £68,000 £32,250 1.1
5 HKUST £98,000 £53,078 0.8
6 IE £69,000 £38,428 0.8
7 Cass Business School £70,000 £39,500 0.8
8 INSEAD £106,000 £63,187 0.7
9 HEC Paris £79,000 £48,142 0.6
10 Said Business School £83,000 £52,000 0.6
11 Judge Business School £156,000 £100,910 0.5
12 Columbia Business School £160,000 £104,325 0.5
13 Harvard Business School £142,000 £96,565 0.5
14 London Business School £103,000 £70,800 0.5
15 EDHEC £51,000 £35,247 0.4
16 Stern School of Business £133,000 £100,982 0.3
17 ESSEC £50,000 £38,686 0.3
18 Kellogg School of Management £125,000 £100,791 0.2
19 Johnson Cornell University £115,000 £93,394 0.2
20 ESADE £66,000 £53,902 0.2
21 Wharton School £134,000 £112,223 0.2
22 IESE £78,000 £66,797 0.2
23 Ross School of Business £104,000 £97,816 0.1
24 Manchester Business School £84,000 £82,000 0.0
25 Hult Business School £52,000 £53,078 0.0

Graph 1 & Table 2. Based on median annual total pay (salary + bonus) for class of 2011,2012 & 2013. MBA fees from the universities’ website.

Best ROI1? Chicago Booth School of Business tops the table thanks to relatively low tuition fees. The low fees also push Warwick Business School, NUS and Baruch Collegeup the table. Columbia and Harvard on the other hand are expensive which impacts their performance on our ROI table. NYU, Cornell, Manchester and HEC offer two-year courses, which hurts their ROI considerably. chicago booth mba

Rank School Total Compensation % Working in finance
1 Said Business School £83,000 65%
2 Columbia £160,000 57%
3 Chicago Booth £167,000 52%
4 Stern £133,000 51%
5 Harvard £142,000 49%
6 Judge Business school £156,000 47%
7 Cass Business school £70,000 43%
8 Wharton School £134,000 40%
9 NUS £75,000 40%
10 Johnson Cornell University £115,000 37%
13 Ross School of Business £104,000 36%
14 IE £69,000 31%
16 Kellogg School of Management £125,000 29%
18 Zicklin School of Business £68,000 29%
19 HKUST £98,000 28%
20 ESADE £66,000 28%
23 LBS £103,000 25%
25 University of Wales £40,000 21%
26 INSEAD £106,000 21%
27 ESSEC £50,000 20%
28 IIM Lucknow £25,000 20%
29 IESE £78,000 19%
30 HEC Paris £79,000 19%
31 Warwick Business School £87,000 16%
32 EDHEC £51,000 15%
33 Manchester Business School £84,000 13%

Graph 2 & Table 3. Based on alumni annual total pay (salary + bonus) graduated in 2011,2012 & 2013.

Is finance and high pay correlated? Not always. A linear regression between the percentage of MBA graduates working in finance and their salaries shows that there is a strong correlation. Yet while a large proportion of Said Business School graduates work in finance, their salaries remain lower than those of Cambridge graduates who are more likely to work in higher paying front office job on the one hand, and in higher paying locations (USA, Hong Kong) on the other.
1 ROI=(compensation-tuition fees)/tuition fees

Alice Leguay, Co-Founder & COO at Emolument said: ‘While choosing to pursue a MBA degree usually carries a desire to either change career path, or turbo-charge an existing job – or in some cases, both – a key attraction to the MBA experience is the prospect of expanding professional and personal networks. MBAs provide a strong financial boost, but most alumni are more likely to emphasise the friendships and opportunities as the ultimate return on their investment.’