Do MBAs really make that much money?

Question

I've seen sources that say freshly minted MBAs make between 90-100k and after a 3-5 years they average 150-200k. Is that really true?

I know it depends on which MBA school you go to, but those average figures (found on CNN.com) seem pretty gaudy to me.

Answer 1

You are perfectly right to say what an MBA earns depends not only on where the diploma is from but also on personal qualities and capabilities of the person. Of late, there is a very high demand for MBAs with an appropriate first degree from Indian business schools, and some high quality ones can fetch figures even more than what you have quoted! In fact, they get picked even before completion of their courses!

Answer 2

This is not a guarantee. MBAs who made that much coming off a program are those who already have lots of experience going into the program. Or it will have to be graduating from one of the top 5 MBA schools in order to get that kind of salary. It also depends on the industry. High paying MBA jobs are usually in investment banking or consulting. Many industries do not need MBAs nor will they willing to pay high price for one.

Answer 3

In my experience, that seems to be true. However, it depends on what you undertake in your MBA - Human resources or MIS? Marketing or Finance? Also, it depends on which school you go to - as the higher paying companies draw from the higher ranked schools. Your grades will also figure into the equation as well.