Daily News

View All News

MBA grads’ salaries post sharp increase, survey finds

June 24, 2015

Base salaries for MBA grads and students saw a sharp increase, according the sixth annual Training the Street MBA Employment Survey. The survey found 43% of respondents received base salary offers of at least $125,000, up significantly from the 26% of respondents who reported salaries in the same range a year ago.

Overall, those who received offers of more than $100,000 edged up to 79% from 74% last year. Satisfaction with these offers rose with the increased base salaries, as 54% said they are “very satisfied” and 38% reported “satisfied.” Only 8% are “dissatisfied,” down from 12% a year ago.

Buy-side firms are an increasingly popular first career stop for MBAs, as private equity and hedge funds are the top career choice for 16% of MBAs, up from 11% last year. The most popular choice, however, remains bulge bracket banks at 26%. Consulting firms followed at 19%, down from 25% last year.

Recruiting efforts by various firms jockeying for top talent remains competitive, especially with a revived effort from alternative investment funds. Survey participants were asked, “What types of firms have been actively recruiting you?” Responses include:

  • Bulge bracket banks: 45%
  • Consulting firms: 44%
  • Boutique advisory firms: 28%
  • Private equity and hedge funds: 20%
  • Startups: 18%

“Increased M&A and capital markets activity has led to further hiring on Wall Street,” said Training the Street Founder and CEO Scott Rostan. “Our banking clients in particular are seeing a healthy rise in new hires year over year, which matches the increase in class sizes at our on-campus, corporate client, and public courses. A healthy banking sector anticipating further deal activity is also spurring more competitive offers for MBA students. We’ve seen these salaries rise the past few years, especially as Wall Street is more cognizant of retention issues and the quality of life concerns of their junior bankers.”

Other key findings of the survey include:

  • New York remains the top city of choice for employment with 45% of respondents choosing the city, up from 40% last year. San Francisco declined to 19% from 22%, while Chicago came in third at 9%.
  • Men comprised 75% of the respondents, while 59% were between the ages of 26 and 29.
  • On-campus recruiting helped 61% find jobs, down from 66% last year, while independent job searching rose to 19%.