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7. MBA SALARIES AND COMPENSATION

7.1 GLOBAL TRENDS IN 2007

MBA salary increases have not been as steep in 2007 as they were in 2006, despite the ongoing surge in MBA demand. The North American / European average reported MBA salary in
2007 is US $ 93,400 compared to US $ 90,500 in 2006 - an increase of 3.5%, compared to a 7% increase the year before. Regionally, MBA salaries in Western Europe increased the most - by 6.5% (4% ahead of the average European inflation rate).

MBA salaries have jumped 25% since 2002, exceeding the levels reached before the dot.com crash of 2001. This increase reflects a high level of optimism amongst MBA recruiters and increased competition for top talent. Chris Higgins, Associate Director of Career Services at Wharton, confirms, "We have seen salary increases across industries - an early estimate would be an 8% increase for Wharton MBAs as a whole."

The lower overall increase of 3.5% suggests that employers are expanding the pool of target MBAs to keep down starting salaries, by recruiting from a larger number of business schools than in the past - this theme of looking beyond the traditional top-tier business schools was often quoted by employers around the world in 2007. Tom Koziki, Director of Career Services at University of California Irvine, observes, "Companies have learnt from the dot.com era and are showing restraint in what they are willing to pay for new MBA hires, preferring to offer strong performance related incentives."

Global MBA recruiters report higher salaries averaging in excess of $ 95,000. These represent an elite cadre of employers who seek MBAs worldwide and are willing to pay a premium to attract the best candidates from the best schools - but the salary differential with other employers is smaller than in previous years. They are not just made up of banks and consulting firms, but also healthcare and some manufacturing, technology and service companies, which have adopted a global approach to MBA recruiting.

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Back to Index TopMBA.com International MBA Recruitment Report 2007

Source: -
QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2007
© QS Quacquarelli Symonds Ltd. 2007
Website: www.topmba.com