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Figure 13 presents average salaries and bonuses reported by employers, with each industry sector disaggregated to provide greater insight. Different industries have their own methods of providing compensation. Some industries offer a higher base salary, while others offer a high year-end bonus.
When deciding between jobs, candidates are recommended to assess their own risk profile and level of financial flexibility.

7.3 BONUSES

The average reported bonus is a sizeable US$ 23,200. Banks are reporting a massive average bonus of US$ 55,200 with investment banks, in particular, reporting bonuses of between $ 25,000 and US$ 150,000 for first year MBAs. While other sectors will find it hard to compete with these figures, banking bonuses do tend to be much more volatile than those in other sectors. Agencies report high average bonus, reflecting their role in feeding candidates into investment banks. Damir Latte of Global-Workplace Recruitment reports that banks are very actively engaging head-hunters and agencies to source MBA talent.

The service sector which includes non-consulting divisions of professional service companies, report average bonus figures of over $ 23,000. Of all sectors covered in the research, only government agencies reported average bones less than $ 10,000 per annum.

It is important for candidates to understand the fiscal status of their bonus. Maximizing after-tax bonus value should be prioritised: in some US States, they are taxed at nearly 50%. In the UK, relocation expenses and tuition reimbursements can be claimed tax-free. In such cases the cost is the same for the recruiter, but the benefit far greater for the candidate.

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Back to Index International MBA Recruitment & Salary Report 2006

Source: -
QS World MBA Tour - QS TopMBA.com International Recruiter Survey 2006
© QS Quacquarelli Symonds Ltd. 2006
Website: www.topmba.com