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These Yale MBA grads land $200,000 starting salary packages

BY Lake SydneyMay 18, 2022, 4:27 p.m.

Students walk through Yale University, as seen in September 2018 in New Haven, Connecticut. (Photo by Yana Paskova/Getty Images)

On average, MBA graduates now earn well over six-figure starting salaries, and that’s not even including some of the major bonuses and benefits they also receive as part of their pay. In 2021, MBA graduates earned $115,000 starting base salary, according to the Graduate Management Admission Council’s 2021 Corporate Recruiter Survey.

But some Ivy League MBA graduates earn nearly double that amount immediately after graduating. Case in point: Yale University School of Management (SOM) reports that its 2021 MBA graduates brought in an average base salary of $140,400 with bonuses totaling more than $52,000, according to its latest employment report.

The most lucrative industries for Yale SOM, which Fortune ranks as having the #9 full-time MBA program in the United States, were consulting and finance. These graduates took home starting salaries totaling $195,000 and $200,000 respectively in 2021. This is partly due to rising MBA salaries for “most sectors,” says Abigail Kies, associate dean from Yale SOM for career development. Fortune.

“Yale SOM students continue to research and find ways to make a meaningful impact through their work,” she says. “This is more possible in the private sector than before, and as a result, more and more students choose consulting, finance and technology, including e-commerce, every year. Yale SOM median salaries are partly influenced by these changing options and choices.

In 2021, more than a third of Yale SOM graduates were hired by consulting firms, while a quarter went into financial services, including investment banking, diversified financial services, capital- risk, private equity and investment management.

“The demand for MBA talent in 2022 is high across many industries, making it highly competitive for employers to receive high acceptance rates from candidates they offer offers to,” Sarah Rumbaugh, CEO of Relish Careers , a job search platform for MBA and other master’s students, tells Fortune.

Why Consulting and Financial Services Firms Hire MBA Graduates

Although consulting and financial services firms have their own specific hiring criteria, they ultimately look for similar attributes in candidates, Rumbaugh says.

“They’re both looking for very smart, highly motivated, and highly skilled young professionals, and the best MBA programs are a reliable source for exactly those types of candidates,” she says. “The academic and professional achievements required for admission to a top-tier MBA program ensure that those admitted are well-rounded: they have excelled in their careers, studies, and extracurricular activities.”

Both of these career paths also require candidates to possess strong technical and interpersonal skills, which are the mainstays of the Yale SOM MBA program. Yale SOM students are good at building relationships and answering technical case questions, Kies says. Additionally, the school’s alumni network “creates virtuous circles” across both industries as well as at specific employers, she adds.

The top three consulting firms — The Boston Consulting Group, McKinsey & Co. and Bain & Co. — were all listed as hiring Yale MBA graduates last year. Renowned investment firms Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley were also on the list.

These companies are paying for MBA graduates

“MBA compensation packages at prestigious consulting firms are at an all-time high,” says Rumbaugh. It’s common for MBA graduates from the top 20 schools to receive a starting salary of $200,000, she adds.

While applicants with just a bachelor’s degree are hired at the top three companies with starting base salaries of $100,000, MBA starting base salaries in 2022 are $175,000, according to data from Management. Consulted, a company that provides preparation and training for professionals entering the industry. With bonuses, compensation packages climb to nearly $240,000.

Yale SOM has yet to release its 2022 salary data, but its 2021 board data matched industry standards for MBA graduates.

Consulting firms will pay for MBA graduates because they “expect a lot of their employees, and offering bonuses is a way to motivate them to perform at the highest level,” Don Lowman, a senior client partner and global leader at Korn Ferry’s Global Total Company Rewards, Already Said Fortune.

Investment banks also hand out salaries well above the median MBA base, in part because of competition among top firms.

“Historically, banking has always been about money,” said Tom Ragland, CEO of investment banking staffing firm The Harrison-Rush Group. Fortune. “Over the past few years, banks have had to compete with big tech companies and startups to attract talent. Before the Internet, banking was the business of an MBA, but now banks are competing with Facebook, Apple, [and] Google for top talent. »

Yale SOM did not provide bonus data for all financial services sectors, but MBA graduates who entered investment banking earned an average base salary of $150,000 with $50,000 in bonuses, while those who got into diversified financial services earned $124,250 as a base salary with $30,000. in bonuses, according to the school pay slip.

Other top business schools have reported that some MBA graduates who go into private equity or venture capital can earn upwards of $200,000 to start, with some earning close to $400,000.

Find out how the schools you’re considering have landed in Fortune’s rankings of the best master’s programs in public health, business analytics programs, data science programs, and part-time, executive, full-time, and online MBA programs.

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