Three years after completing their studies, MBA graduates received an average annual salary of US$142,000 in 2016. The previous year’s cohort took home an average of US$135,000, making this the largest increase in MBA graduate salaries in a decade.
The figures were reported by the Financial Times based on its Global MBA ranking. Speaking to the Financial Times, Judith Hodara, co-founder of Fortuna Admissions, which advises business school applicants, said competition for students and graduates had increased due to an interest from companies in sectors not previously known to recruit from business schools.
Companies in the financial services and ecommerce sectors paid their MBA graduates the most, on average US$159,000 and US$154,000 per year, respectively.
In Hong Kong, MBA graduates from Hong Kong University of Science and Technology earned the highest salary at US$ 149,500 per annum. The MBA is ranked 15th overall globally. In second place are MBA graduates from the University of Hong Kong with an annual salary of USD 123,500 followed by those with MBAs from the Chinese University of Hong Kong at US$121,000.
Graduates from the National University of Singapore Business School were paid US$131,500, while MBA graduates from Singapore’s Nanyang Business School took home an average annual salary of US$126,000 in 2016.
Completing an MBA remains a significant investment, with fees at a top 100 business school equivalent to 8.7 months of gross annual salary three years after graduation. According to the Financial Times, the total cost for a two-year MBA in the US is more than US$300,000.
When it comes to overall ranking, Insead tops the FT Global MBA chart for the second year in a row. The school was the first to have two campuses with permanent faculty, one in France and the second in Singapore. Its MBA is one of the most internationally diverse and about 95% of its faculty and students are international.
ALSO READ: Graduate salary expectations across APAC
Photo / iStock