MBA Earning Potential Still Rising

The Graduate Management Admissions Council (GMAC)informs us that the average earning potential is rising....

For Immediate Release
May 19, 2006

SALARIES FOR NEW MBAs TOP $92,000

Two-Thirds of Job Offers Include Signing Bonuses,
GMAC Survey Also Finds
McLean, Va.—Newly minted MBAs are commanding significantly heftier salaries in 2006 than their counterparts did last year, with the average business school graduate’s starting base salary topping $92,000, according to new research from the Graduate Management Admission Council® (GMAC®).

Amid a healthy recruiting environment built on strong employer confidence in the economy, the average new MBA with a job offer in hand will earn $92,360 during their first year of employment, up 4.2 percent from the $88,626 graduates in 2005 received. Moreover, two-thirds of job offers to MBAs in 2006 come with signing bonuses that average $17,603, up slightly from last year.

“The MBA continues to demonstrate its strong value proposition,” said David A. Wilson, president and CEO of GMAC. “In a knowledge economy, leadership and management demand a complex portfolio of skills and talents. A selective MBA program gives its graduate those skills.”

In addition to earning bigger paychecks, more MBAs are finding jobs while still in school, continuing a multiyear upward trend. Fifty-two percent of respondents to the 2006 GMAC Global MBA® Graduate Survey said they had received or accepted a job offer before graduation, compared with 50 percent in 2005, 42 percent in 2004 and 36 percent in 2003.

That's good news for those who considering making the investment. The higher the ROI, the more willing you'll be to take the risk.