Harvard University MBA graduates pull down $160,268 in total first year compensation in 2018
Harvard University – In what could be termed as the record of sorts, this year, the MBA graduates of the Harvard University of the US have pulled down a whopping $160,268 in total first-year compensation, as per the Forbes report. The handsome amount, adjusted for the percentage of MBA graduates reporting sign-on bonuses and other guaranteed first-year compensation, logging a 3.6% rise on the previous year’s total of $154,750, noted the report.
Reason for Sudden Spurt in Salary
The reason for the sudden spurt in salary is primarily attributed to an increase of $5,000 in median base salaries to $140,000 in 2018, from $135,000 in 2017, in addition to a spike in both the size and number of students, who reported getting other guaranteed CTC, said the report. An estimated 65% of the University’s graduating students in 2018 earned median sign-on bonuses of $25,000, while 14% reported median guaranteed first-year compensation of $28,700, which is up from 13% getting $25,000 in 2017. The totals were published on November 5, 2018, in the school’s 2018 Employment Report. Based on the career path chosen by a newly minted Harvard MBA, the rewards might as well be far more lucrative than the new record amount.
For the lucky 6% of the graduating MBAs who landed jobs with hedge funds in investment management, for instance, total median compensation reached $211,050 with media base salaries of $150,000 to start, median sign-on bonuses of $35,000, received by 33% of the students, and whopping another guaranteed first-year comp of $150,000, reported by a third of the graduates. What’s more, the record $211,050 exceeds last year’s total of $193,827 by 8.9%; the report pointed out.
Stating that one in four members of the Class of 2020 accepted jobs in consulting where the pay also was well above the class median, total the report went on to add that the total median compensation for consultants was $175,800, a tidy sum fueled by $150,000 starting salaries, $25,000 signing bonuses, received by 94% of the MBAs, and $28,750 in other guaranteed comp, reported by 8% of the students who went into consulting. The consulting total beats last year’s $174,600, it said.
Tough to get admission
Of course, it’s not easy to get into Harvard Business School, says the report and adds that the school receives slightly more than 10.6 applicants for each of its 930 classroom seats in an entering cohort. In 2017, an estimated 1,085 candidates were admitted out of a total applicant pool of 9,866 people, an acceptance rate of 11%. Among the estimated 8,781 who were rejected last year were thousands of candidates fully qualified to get into HBS and complete its MBA program. Many of them would be indistinguishable from the majority of the 1,085 who got into the school, added the report.