Archive for the ‘MBA Degree’ Category

How many MBA degrees are awarded each year?

February 22, 2016

Answer: Around 200,000

The numbers  skyrocketed from the 1970s to about 2005.

The growth rate slowed a bit until 2010.

Since then, the pace has picked up again.

Since 1970, over 2 million MBAs have been conferred..

 

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Source: ”Digest of Education Statistics”

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$$$: How much do MBA interns get paid?

November 16, 2015

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

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Bloomberg: There’s a gender gap in MBA pay … and, it’s a big deal!

November 4, 2015

Biennially, Bloomberg (Business Week) ranks MBA schools based, in part, on surveys of employers, current students, and alumni.

This year, they used the alumni sample to assess career progression – how well MBAs are doing (and getting paid) a few years after their b-school graduation.

The general finding: “The data shows that 6 to 8 years after graduation, the typical alum makes $169,000 … triple their pre-MBA compensation.”

That’s pretty good, right?

But, there’s a big divide.

“Within a few years of graduation, women with MBAs earn lower salaries, manage fewer people, and are less pleased with their progress than men with the same degree.”

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What the heck is going on?

(more…)

Business Week: 2015 MBA Rankings … new process, new results.

November 3, 2015

Bloomberg (Business Week) changed the way it compiles its MBA rankings “with a sharper focus on what people most hope to get after business school.”

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Specifically, BW beefed up its emphasis on alumni feedback to calibrate how they’re doing,  what they’re earning and how happy they’re feeling.

And, BW says “Older elements of our ranking, including a tally of faculty research, have been scrapped because they don’t get at our fundamental question: How well does this business school channel its graduates into good jobs?”

Here is the revised list of metrics for scoring MBA programs.

  • Employer Survey (35 percent of total score):  recruiter feedback on the skills they look for in MBAs, and which programs best equip their students with those skills
  • Alumni Survey (30 percent):  feedback from the classes of 2007, 2008, and 2009 on how their MBAs have affected their careers, their compensation change over time, and their midcareer job satisfaction
  • Student Survey (15 percent):  the class of 2015’s take on academics, career services, campus climate, and more
  • Job Placement Rate (10 percent):  the most recent data on how many MBAs seeking full-time jobs get them within three months of graduation
  • Starting Salary (10 percent):  most recent data on how much MBAs make in their first jobs after graduation, adjusted for industry and regional variation

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Here are the 2015 rankings …

(more…)

$$$: How much do MBA interns get paid?

April 29, 2015

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

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$$$: How much do MBA interns get paid?

January 19, 2015

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

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MBA: Career-switching is back in fashion …

October 20, 2014

According to Business Week: “More MBA grads are switching careers as the job market improves.”

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Here are the details …

(more…)

$$$: How much do MBA interns get paid?

May 1, 2014

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

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Follow on Twitter @KenHoma            >> Latest Posts

How many MBA degrees are awarded each year?

April 30, 2014

Answer: Around 200,000

The numbers  skyrocketed from the 1970s to about 2005.

The growth rate slowed a bit until 2010.

Since then, the pace has picked up again.

Since 1970, over 2 million MBAs have been conferred..

 

image
Source: ”Digest of Education Statistics”

#HomaFiles

Follow on Twitter @KenHoma                 >> Latest Posts

$$$: How much do MBA interns get paid?

February 26, 2014

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

image

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Follow on Twitter @KenHoma            >> Latest Posts

MBA: Career-switching is back in fashion …

February 25, 2014

According to Business Week: “More MBA grads are switching careers as the job market improves.”

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Here are the details …

(more…)

MBA Pay: European & Asian schools catch the U.S. …

February 17, 2014

According to research reported in BusinessWeek

MBA grads pay at business schools in Europe and Asia increased dramatically in the past couple of years.

Adjusted for local purchasing power, European and Asian MBAs have essentially caught up to U.S. MBAs.

To avoid distortions between countries, the pay levels are stated in “international dollars” that have been adjusted for purchasing power parity.

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The researchers attributed the pay growth in Europe to the growing demand for MBAs in Europe and the geographic proximity of highly ranked European programs to the key labor markets they serve.

Why has MBA pay in the U.S. apparently stalled?

(more…)

MBA: You get what you pay for (at least at MSB) …

July 29, 2013

Couple of weeks ago, we posted that Business Insider ranked the MSB MBA program #14.

In a follow-up, Business Insider ranked the “most expensive” MBA program.

Most expensive: NYU Stern,

 

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MSB’s ranking …

(more…)

Hot: MSB MBA ranked #14

July 17, 2013

It may not have the tradition and cachet of the the Business Week or US News rankings, but …

Business insider has ranked Georgetown’s McDonough School of Business MBA program #14 in the world.

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click to see the complete Business Insider rankings

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Thunderbird on the rocks?

July 2, 2013

Not the cheap wine … we’re talking higher education.

An article in the Economist caught my eye: “The higher-education business – Honours without profits?”

The thrust of the article was that  not-for-profit schools are starting to hook-up with for-profit schools … ostensibly to frame a more sustainable business model …  merging the intellectual capacity of universities with the content delivery efficiency of the for-profits.

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Interesting, but that’s not what caught my eye … here’s what did.

(more…)

Tsunami Alert: NYU b-school prof blasts high MBA tuitions …

April 26, 2013

In a Financial Times article,  NYU Stern School of Business professor Larry Zicklin, says the days when getting an MBA costs well north of $100,000 are coming to an end.

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Zicklin argues that  …  b-schools face an existential threat … and that they aren’t aware of the tsunami that’s about to hit them.

The era of charging $100,000 for an education is over.

Here’s why …

(more…)

MBA: Career-switching is back in fashion …

April 23, 2013

According to Business Week: “More MBA grads are switching careers as the job market improves.”

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Here are the details …

(more…)

$$$: How much do MBA interns get paid?

April 22, 2013

According to Business Week, top school MBAs haul in an average of about $1,750 per week for their summer internships.

At HBS, the median is $7,000 per month … that’s about $1,650 per week … which annualizes to about $90k.

Of course, there’s wide variation based on the school and the industry.

Note that Kellogg –- a general management and marketing school – tops the list

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Watch out HBS, Perdue University is pecking at your heels.

March 20, 2013

Nope, not a typo.

It’s Perdue as in chickens, not Purdue as Boilermakers.

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Who says so?

None other than HBS Prof. Clay Christensen — the father of the idea of disruptive innovation.

(more…)

MBA Pay: European & Asian schools catch the U.S. …

February 21, 2013

According to research reported in BusinessWeek

MBA grads pay at business schools in Europe and Asia increased dramatically in the past couple of years.

Adjusted for local purchasing power, European and Asian MBAs have essentially caught up to U.S. MBAs.

To avoid distortions between countries, the pay levels are stated in “international dollars” that have been adjusted for purchasing power parity.

image

The researchers attributed the pay growth in Europe to the growing demand for MBAs in Europe and the geographic proximity of highly ranked European programs to the key labor markets they serve.

Why has MBA pay in the U.S. apparently stalled?

(more…)

$$$: How much do MBAs make right out of school?

January 28, 2013

Answer: It depends on a person’s “major” (i.e. finance folks tend to make more), their background before MBA school, and the b-school they attend.

According to NerdWallet, the average MBA student will earn $113,730 straight out of graduation, which includes a signing bonus of $18,764.

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Stanford University leads with an average total compensation of $146,677.

Check out Nerdwallet’s Top 20 List … and rejoice, MSB is on it !

(more…)

$$$: How much is a degree worth?

January 9, 2013

Answer: About a million bucks.

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Here’s the data …

(more…)

WSJ: “Smaller Paycheck Awaits M.B.A.s”

January 7, 2013

Don’t fret, MSBers.

Today’s WSJ article — which quotes MSB prof Brooks Holtom (below) — portrays a dismal ROI picture for the typical MBA … but points out that the economic crunch is not as severe for prestigious school grads (think, MSB).

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Debt-to-compensation ratio

First the numbers.

The WSJ tracked the average comp levels of young MBAs and matched it against their school debt loads.

The conclusion: an average young MBA has carries a school debt roughly equal to 1-years gross compensation … call it about 2 years of after-tax comp.

Note that the gross comp to student debt ratio was about 4-to-1 in 2001 … during the dotcom land rush.

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So, what’s going on?

(more…)

B-School students get some satisfaction … at some schools.

November 19, 2012

Punch line: Business week releases results on which B-Schools have the most and least satisfied students.

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Excerpted from businessweek’s, “Can’t Get No Satisfaction: The B-School Happiness Index”

Which business schools have the most satisfied students?

That question will in large part determine which schools make it to the top of the list and which are consigned to rankings oblivion.

Student satisfaction counts for 45 percent of the final ranking, while recruiter surveys contribute an additional 45 percent and a review of faculty research adds the final 10 percent.

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It’s worth noting how closely student satisfaction tracked with teaching quality and career services this year.

Four of the five schools with the most satisfied students were on our lists of schools with the most highly-rated teachers and career services.

Three of the five programs with the least-satisfied students were on our list of schools with the most poorly rated career services.

Don’t look for the highly ranked MBA programs at Harvard, Wharton, and Stanford to top the list of schools with the most satisfied students.

As a rule, students come to such programs with super-high expectations and, in our surveys, are generally reluctant to give them the highest marks.

But the elite programs get their revenge in other ways: Recruiters love them.

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MSB back in Business Week’s Top 30 …

November 18, 2012

This year’s BusinessWeek MBA rankings are out.

Here are the punch lines  …

= = = = =

Usual suspects in the top 10

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Good news: MSB bounced back into the top 30
… moved from #33 in 2010 to #30 in 2012

Big improvement in student survey scores …

Big deal since below 30 often slotted “all other”

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Offset: Regional competitor Maryland bounced from #42 to #24

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WSJ: M.B.A.s Rethink Wall Street

October 31, 2012

According to the WSJ

Repeated cutbacks have dulled Wall Street’s luster for some prospective Masters of the Universe, in the latest reflection of the gloom overhanging the finance industry.

A Wall Street gig “isn’t as prestigious as it used to be” because the future—promotion opportunities, salary gains, even basic job security— is so unclear.

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“Students’ interest and appetite has become much, much more diverse” over the past decade, says Julie Morton, associate dean of career services and corporate relations at University of Chicago Booth School of Business.

Students are increasingly lured by start-ups and stable jobs at consumer-products firms and industrial conglomerates.

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MBA applicants declining … more $$$ for top students and minorities.

September 14, 2012

Punch line: Top US business schools are reporting single and double digit applicant decline, making admission easier for candidates.  After years of applicant increases, admissions offices explain the trend by tough competition – with cheaper and more convenient programs, and ramped up efforts from 2nd tier schools. 

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Excerpted from businessweek.com’s, “At Top Business Schools, an MBA Application Drought.”

In the last few weeks, a handful of top business schools have reported single-digit, and in some cases double-digit, declines in applications for their full-time MBA classes, including most recently Columbia Business School and New York University’s Stern School of Business.

Full-time MBA applications have sunk at at least a dozen of the top 30 B-schools.

Among the schools that have reported declines are the University of Chicago’s Booth School of Business, the Yale School of Management and Duke University’s Fuqua School of Business (down 3.5 percent, 9.5 percent, and 7 percent, respectively).

A handful of schools reported even steeper drops, including Michigan State University’s Broad College of Business, where applications fell 18 percent, and Indiana University’s Kelley School of Business, with a significant dip of nearly 21 percent.

The decline in applications is attributed to increased competition from rival business schools and a plethora of available choices, including part-time and online programs.

Second-tier schools are working more aggressively to recruit top MBA candidates and entice them with hefty financial aid packages.  “…employer sponsorship for full-time MBA programs is almost nonexistent, and doing an MBA part-time or online can be an attractive offer for some students, especially when there is funding available.

With a smaller pool of MBA applicants, getting an offer to a top business school has become slightly easier … To meet their target enrollment for this year’s incoming MBA class, schools had to work harder to ensure admitted students accepted their offers. For many of those schools, that extra push paid off. Yield was up at nine of the 13 schools on which information was available.

This year, competition was especially stiff for women, underrepresented minorities, and students from nontraditional work backgrounds, says Liz Riley Hargrove at Fuqua. “It was just a really competitive environment, and I think it impacted everybody’s yield this year,” she says.

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MBA Rankings: A loser’s uh-oh upsets conventional wisdom …

March 28, 2012

In a prior post, we looked at changes in Business Week’s rankings of MBA program in the 10-year period from from 2000 to 2010.

The key observations:

  • 13 MBA programs (e.g. HBS, Wharton, Kellogg) held their top 30 positions – plus or minus a spot or two – between 2000 and 2010
  • 6 MBA programs were in the 2000 Top 30 and improved their position by 6 or more spots between 2000 and 2010
  • University of Chicago  jumped 9 spots to take over the #1 ranking
  • 6 MBA programs that weren’t in the Top 30 in 2000 broke into the 2010 Top 10
  • 5 MBA programs dropped a whopping 15 places or more from 2000 to 2010 (more on that later, too)
  • Another 6 MBA programs dropped 5 spots or between 2000 to 2010

Also in a prior post, we observed that among the 6 MBA programs that weren’t in the Top 30 in 2000 and broke into the 2010 Top 10, SMU is the shining star.

SMU came out of nowhere – unranked as late as 2006 – and soared to #12 in 2010.

They did it with A+ Teaching and A+ Career Services … that earned them a #6 ranking with Corporate Recruiters and a #12 ranking overall.overall.

While SMU’s formula reflects mucho common sense, it’s not exactly conventional approach.

More often, MBA programs try to boost their rankings through intensified faculty research.

The logic: publish in academic journals, get recognized as thought-leaders, attract better students and recruiting companies … and a virtuous cycle becomes unstoppable.  Makes dense.

Our neighbor, the University of Maryland’s Smith School of Business tried that approach … with some disappointing results.

In 2000, Maryland was  at #27.

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Given its relatively low #33 rating in Intellectual Capital, Maryland turned up the research jets.

Successful?

Well, Maryland’s ranking in Intellectual Capital skyrocketed to #2 … trailing only Duke – a perennial research giant.

What happened to it’s overall ranking?

Maryland dropped 15 spots … out of the Top 30 … to #42.

Ouch.

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Source: Business Week – 2000 & 2010 MBA Rankings

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BTW: The #3 program in Intellectual Capital is Wake Forest.

Its overall rank?

According to Business Week … #47.

>> Latest Posts

MBA Rankings: A big winner’s keys to success …

March 27, 2012

In a prior post, we looked at changes in Business Week’s rankings of MBA program in the 10-year period from from 2000 to 2010.

The key observations:

  • 13 MBA programs (e.g. HBS, Wharton, Kellogg) held their top 30 positions – plus or minus a spot or two – between 2000 and 2010
  • 6 MBA programs were in the 2000 Top 30 and improved their position by 6 or more spots between 2000 and 2010
  • University of Chicago  jumped 9 spots to take over the #1 ranking
  • 6 MBA programs that weren’t in the Top 30 in 2000 broke into the 2010 Top 10 (more on that later)
  • 5 MBA programs dropped a whopping 15 places or more from 2000 to 2010 (more on that later, too)
  • Another 6 MBA programs dropped 5 spots or more between 2000 to 2010

Among the 6 MBA programs that weren’t in the Top 30 in 2000 and broke into the 2010 Top 10, SMU is the shining star.

SMU came out of nowhere – unranked as late as 2006 – and soared to #12 in 2010.

How did they do it?

Here are the details that support the SMU ranking in 2008 – SMU’s first time in the Top 30:

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Answer: heavy emphasis on Teaching (A+) and Career Services (A) yielded a #17 ranking among Corporate Recruiters … and a number #18 overall ranking.

Not bad! But, apparently, not good enough for SMU.

Things got even better in 2010.

SMU kept Teaching at an A+ level and boosted Career Services from a plain old A to an A+ … the result: up to #6 with Corporate Recruiters and #12 overall.

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Source: Business Week – 2000 & 2010 MBA Rankings

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Bottom line: Get good students, teach them a lot, help them find jobs …. and, BINGO, MBA program success.

You’d think that’s common sense, right?  No surprise.

Well, tomorrow we’ll look at one of the biggest losers … with a twist that may surprise some of you.

>> Latest Posts

MBA Rankings: A 10 year perspective … and, some surprises.

March 26, 2012

There has been a lot of talk around here about the MBA school rankings.

Typically, the conversation revolves around the changes – up or down – from the last rankings.

I got curious … wanted to see the landscape change over a longer-term … and picked a 10-year time horizon of the Business Week rankings – 2000 to 2010.

My going-in hypothesis was that there would be heavy inertia … that the top slots would be occupied by the usual suspects.

And, I expected schools to show relatively little movement up or down.

Here’s what I found …

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13 MBA programs held their top 30 positions – plus or minus a spot or two – in 2000 and 2010:

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6 MBA programs that were in the 2000 Top 30  improved their position by 6 or more spots between 2000 and 2010:

  • UC Berkeley had the sharpest rise … 10 spots to #8
  • Univ. of Chicago (my alma mater) had the most impressive gain … “only” 9 spots since they couldn’t do better than taking over the #1 ranking
  • Stanford cracked the Top 10 by moving up 6 spots.

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Surprising (to me), there are 6 MBA programs that weren’t in the Top 30 in 2000 and that broke into the 2010 Top 10 … 5 just made it into the Top 30 … a proud accomplishment, but one that pales in comparison with SMU … SMU came out of nowhere – unranked as late as 2004 – and soared to #12 in 2010.

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Of course, if there are winners, there must be losers.

5 MBA programs dropped a whopping 15 places or more from 2000 to 2010.

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Another 6 MBA programs dropped 5 spots between 2000 to 2010.

  • 5 of the programs stayed in the Top 30 despite their skids
  • Cornell and MIT-Sloan dropped out of the Top 10
  • Unfortunately, my beloved Georgetown’s slip was enough to lose Top 30 status.  (Don’t worry, we’ll be back …)

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Source: Business Week – 2000 & 2010 MBA Rankings

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In subsequent posts we’ll drill down to “why?” and “so what?”

Stay tuned.

>> Latest Posts

 

Aiming for the 1%, MBAs still flock to Wall Street…

October 26, 2011

So what if Wall Street firms almost caused the world economy to implode.

So what if a couple of the biggest firms cratered and bonuses have been slashed.

So, what is the Feds and protesters have the evil bankers in their sites.

Sill, according to the WSJ, MBA grads are heading to Wall Street – if they can land offers.

Financial-services industry hiring at the big Master of Business Administration programs hit a post financial-crisis high this year.

Employers such as banks, hedge funds, investment managers, private equity and venture capital firms hired 39% of job-seeking 2011 graduates at Harvard Business School and the Yale School of Management, 36% at the Stanford Graduate School of Business and 51% at Columbia Business School.

Even in an age of heavy layoffs, shrinking bonus pools and noisy antibank protests, it is no mystery why M.B.A. students keep entering the revolving door that is Wall Street. It pays well and carries considerable prestige.

But those getting jobs in finance will be entering an industry undergoing a massive belt-tightening, as investors flee banks hammered by a weak economy, tumultuous markets and tightening regulation.

“You’re vulnerable if you’re in that five-, seven- or nine-year range. You’re expensive and you don’t have clients.”

Investment bankers with about five years of experience can command compensation of close to $400,000.

New hires from business schools can expect about one-third as much.

Have to admit that I’m surprised that interest in finance careers hasn’t slowed a bit.

I guess there’s nothing like the smell of money.

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What, you don’t have a master’s degree?

July 27, 2011

Punch line: “Colleges are turning out more graduates than the market can bear, and a master’s is essential for job seekers to stand out”

Excerpted from NYT “The Master’s as the New Bachelor’s

Browse professional job listings and it’s “bachelor’s required, master’s preferred.”

Call it credentials inflation.

Colleges are turning out more graduates than the market can bear, and a master’s is essential for job seekers to stand out

Once derided as the consolation prize for failing to finish a Ph.D. or just a way to kill time waiting out economic downturns, the master’s is now the fastest-growing degree.

The number awarded, about 657,000 in 2009, has more than doubled since the 1980s, and the rate of increase has quickened substantially in the last couple of years.

Nearly 2 in 25 people age 25 and over have a master’s, about the same proportion that had a bachelor’s or higher in 1960.

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The degree of the moment is the professional science master’s, or P.S.M., combining job-specific training with business skills.

Many new master’s are in so-called STEM areas — science, technology, engineering and math …  recognizing that not everyone is ivory tower-bound and are drafting credentials for résumé boosting.

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So what’s going on here?

Have jobs, “skilled up”?

Or perhaps all this amped-up degree-getting just represents job market “signaling” — the notion that degrees are less valuable for what you learn than for broadcasting your go-get-’em qualities. “Credentialing gone amok.”

“There is definitely some devaluing of the college degree going on. We are going deeper into the pool of high school graduates for college attendance” making a bachelor’s no longer an adequate screening measure of achievement for employers.

>> Latest Posts

In praise of global residencies …

February 28, 2011

Some timely reading for 2nd year Georgetown MBAs as they jump on planes to start their Global residencies. 

According to the dean of the Darden Graduate School of Business at the University of Virginia …

New research has revealed a sizable gap between what the business world needs and what business schools provide to their students.

The bane of most business school deans is the kind of conversation one has with a CEO who wags his finger and tells you that business schools just aren’t delivering the kind of talent business needs.

Lately, it seems that the CEOs have been telling a story like this: “A recent grad we hired got up to give a presentation to our senior management and had simply no appreciation for the challenges of globalization: no feel for the country or region; no anticipation of corruption or socialism in-country; no grasp of the supply chain difficulties; no appreciation for the differences in rule of law and property rights; and the proposed brand name translated into an unmentionable body part. The pitch was an embarrassment.”

A new report issued by the Association for the Advancement of Collegiate Schools of Business, the leading accreditor of business schools in the world reveals a sizable gap between what the world needs and what management educators do.

  • There are about 12,600 institutions in the world award undergraduate or graduate degrees of some kind in business.
  • Only about 10% of these are accredited as meeting widely accepted expectations of quality.
  • Many of the unaccredited institutions are locally focused, and concentrate in the developed economies.

There is a gap in the curricula of business schools, between the aspiration for global content and the reality.

Most schools — even leading schools — aren’t bringing globalization into the classroom in ways that do justice to the subject or the needs of businesses.

We should do better.

Fortune.  B-Schools: It’s time to globalize, February 25, 2011 

Toxic Debt: The Student Loan Spiral

February 17, 2010

TakeAway: As tuitions rise, many students are borrowing heavily to pay their bills. Some no doubt view it as “good debt,” because an education can lead to a higher salary. But in practice, student loans are one of the most toxic debts, requiring extreme consumer caution responsibility.

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Excerpted from WSJ: As Default Rates on Borrowing for Higher Education Rise, Some Borrowers See No Way Out, Feb. 13, 2010

There is an estimated $730 billion in outstanding federal and private student-loan debt — and only 40% of that debt is actively being repaid. The rest is in default, or in deferment, which means that payments and interest are halted, or in “forbearance,” which means payments are halted while interest accrues.

When Michelle Bisutti, a 41-year-old family practitioner in Columbus, Ohio, finished medical school in 2003, her student-loan debt amounted to roughly $250,000. Since then, it has ballooned to $555,000.

It is the result of her deferring loan payments while she completed her residency, default charges and relentlessly compounding interest rates. Among the charges: a single $53,870 fee for when her loan was turned over to a collection agency. Now, the entire balance of her federal loans will be paid off in 351 months. Dr. Bisutti will be 70 years old.

Dr. Bisutti says she loves her work, but regrets taking out so many student loans. She admits that she made mistakes in missing payments, deferring her loans and not being completely thorough with some of the paperwork, but was surprised at how quickly the debt spiraled.

As tuitions rise, many people are borrowing heavily to pay their bills. Some no doubt view it as “good debt,” because an education can lead to a higher salary. But in practice, student loans are one of the most toxic debts, requiring extreme consumer caution responsibility.

Unlike other kinds of debt, student loans can be particularly hard to wriggle out of. Homeowners who can’t make their mortgage payments can hand over the keys to their house to their lender. Credit-card and even gambling debts can be discharged in bankruptcy. But ditching a student loan is virtually impossible, especially once a collection agency gets involved.

* * * * *

Lenders say student-loan terms are clear and that they try to work with borrowers who get in trouble.

Loan terms, including interest rates, are disclosed “multiple times and in multiple ways,” says Martha Holler, a spokeswoman for Sallie Mae, who says the company can’t comment on individual accounts. Repayment tools and account information are accessible on Sallie Mae’s Web site as well, she says.

Full article:
http://online.wsj.com/article/SB10001424052748703389004575033063806327030.html?mod=WSJ_hps_MIDDLESixthNews

There’s still hope for MBAs …

December 1, 2009

TakeAway:  There is no doubt that the hiring environment is less than ideal for MBAs … all MBAs. 

However, there is hope.  Companies appear to be hiring but students must be a little more flexible and patient than in the past.

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Excerpted from BusinessWeek, “MBAs Confront a Savage Job Market,” By Anne VanderMey, October 29, 2009

Adam Rosenberg did everything right. He got into a good school. He landed a great internship. He was even vice-president of two MBA clubs and a graduate teaching fellow. But when it came time for companies to hire this year, the 2009 graduate … was surprised to find out how little it all mattered … 

He’s not alone … MBA students have found themselves facing what schools say is the worst hiring season they’ve ever seen.

According to the latest data … 16.5% of job-seeking students from the top 30 MBA programs did not get even one offer … three months after graduation. Last year that was true of just 5% of students. And … starting pay was down … For many programs, it marked the first time since the tech bubble burst that salaries didn’t increase. Signing bonuses, too, fell both in value and quantity …

One factor that made this recession different was that it hit MBA students where it hurt the most, with thousands of high-paying finance jobs going up in smoke …

The most successful schools this year were able to direct students who were shut out of investment banking and consulting into different industries … Rather than holding on to their hopes of working on Wall Street, students looked at their other skill sets …

A few sectors have been able to pick up some of the slack. Health care, energy, government, and nonprofit hiring are holding up particularly well …

Much of the hiring happened months later than normal. Many companies shifted from hiring on an academic schedule, which requires the stability to sign on new employees almost half a year before they show up to work, to hiring on an as-needed basis—often making offers much later in the year …

Early signs this year don’t point to a swift recovery for the class of 2010. Some believe the coming months will be even worse. That means many students will end up taking jobs they might not otherwise have considered or returning to industries they came to business school to get out of. That could be both good and bad news for this recession’s new grads.

Some students will discover jobs in new fields, try entrepreneurship, or travel to new countries. Instead of gravitating to a few companies that dominate recruiting, many schools say students are going to boutique firms or startups where they might be the only MBA hire that year … Students are opening their minds to new things …

Edit by TJS

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Full Article
http://www.businessweek.com/bschools/content/oct2009/bs20091029_862211.htm

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The MBA road to riches … well, maybe for some.

November 3, 2009

Key Takeaway: MBA students hoping their degree will lead to a fat salary right out of school should think again. While career management profiles make them giddy over the fact that the average student makes nearly $100,000, the harsh truth is that few will be rolling in this much dough.

Furthermore, that “prestige” that goes along with your school won’t make much of a difference unless it falls at the very top of the list, and those students will have a slight advantage their entire careers.  Hmmm ….

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Excerpted from BusinessWeek “MBA Pay: Riches for Some, Not All” by Anne VanderMey, September 28, 2009

Every incoming student has heard rags-to-riches tales of that gilded certification leading to giant paychecks and even bigger bonuses. But how often do these MBA fairy tales actually come true? According to new research: not as often as you think.

The averages usually reported by schools tell prospective students only part of the story. And numbers outside the averages or ranges can be hard to come by, leaving students to play an uncomfortable guessing game in the shadow of student loans.

Less sunnily, there’s a stark pay divide between graduates from top schools and the average MBA graduate, with the average MBA making only slightly more than half what grads from top programs do starting out. Even more sobering, the vast majority of MBAs—bearing degrees from schools of all stripes, good, bad, and indifferent—will not earn more than $75,000, and only about 4% will exceed the $150,000 mark.

According to PayScale, graduates from the Top 10 programs will make nearly twice as much as the typical MBA. And that pay advantage wears off fast after the Top 10, says Al Lee, PayScale’s director of quantitative analysis. “Outside of the Top 20 [ranked schools], you’re under six figures,” he says. Even worse news for students at lower-ranked programs: “By the time you get out of the Top 30 you’re talking just a small premium over the average school,” Lee says.

“When I’m showing a short list of candidates for a COO role, there’s an automatic quick glance to the education section of everybody’s CV,” he says. Work experience still trumps all, but he says he’s seen cases where degrees from top schools have tipped certain job candidates over the edge. Plus, hiring a Harvard graduate is usually viewed as a safe bet, Travis says, invoking the old maxim, “Executives normally don’t get fired for hiring IBM.”

No matter how you look at it, the fantastic notion of a diploma being an express ticket to a big company’s corner office is probably just that—fantasy.

Edit by JMZ

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Full Article
http://www.businessweek.com/bschools/content/sep2009/bs20090928_592028.htm

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