Is an MBA Worth It?

IS AN MBA WORTH IT? With competition in the job market on the rise, many recent college grads see business school as a tempting option. It's commonly thought that an MBA from a prestigious business school can help land coveted positions and guarantee greater income. But is that really the case? A LIFETIME OF PAYBACK Sure, going to business school could set you back a pretty penny – average tuition at one of the country's top 10 programs is $50,147 a year. However, data shows that upfront investment in an MBA really pays off in the long run. BACHELOR'S DEGREE HIGH SCHOOL DIPLOMA $1.6 MILLION MBA $3.2 MILLION $2.7 MILLION LIFETIME EARNINGS LIFETIME EARNINGS LIFETIME EARNINGS* Even among those with graduate degrees, someone with an MBA can expect to receive greater returns over the course of his or her career. MEDIAN SALARY BY YEARS OF EXPERIENCE >l yr 1-4 yrs 5-9 yrs 10-19 yrs 20+ yrs >l yr 1-4 yrs 5-9 yrs 10-19 yrs 20+ yrs >l yr 1-4 yrs 5-9 yrs 10-19 yrs 20+ yrs MASTER OF ARTS MASTER OF SCIENCE MBA MBA v. ENTREPRENEUR Do you even need a business degree anymore? Some say no. For those who have initiative and entrepreneurship coursing through their veins, an MBA might not be necessary for success. Take it from a few of these notable names who either didn't attend or didn't complete business school. MARY KAY ASH JEFF BEZOS BILL GATES Founder of Founder, CEO, and Microsoft Mogul Mary Kay Cosmetics Chairman of Amazon TERRY LEAHY STEVE JOBS RICHARD BRANSON Owner of the Former Co-Founder Virgin brand of companies CEO of Tesco of Apple However, graduating from one of the country's top business schools will put you among very distinguished company. SALLIE KRAWCHECK PHILIP CONDIT PHIL KNIGHT Former chairman Former chairman Chairman, co-founder. and CEO of Citigroup Wealth Management and CEO of Boeing and former CEO of Nike Massachusettes Institute of Technology Sloan School of Columbia Business School Stanford Graduate School of Business Management GEORGE W. BUSH JON CORZINE PAUL OTELLINI Former CEO of Goldman Sachs and Governor of New Jersey Former U.S. President CEO of Intel University of California, Berkeley. Haas School Of Business Harvard Businoss School University of Chicago Booth School of Business IN THE CORPORATE WORLD 36% of CEOS at top 100 Of that group, 63% had an MBA from a "top 20" program. As of 2007, 39% of CEOS around companies in the Fortune the country had an MBA. 500 have an MBA. THE EXECUTIVE STUDENT BODY Not all MBA students attend business school full-time. Some opt for an Executive MBA program, which allows students to complete their degree while still working full-time. This way, candidates can work toward their MBA without sacrificing a regular salary. In 2010, EMBA students reported an increase in promotions, salaries, and bonuses during their time in the program. 97% of graduates said their MBA program Average salary and bonus amounts of 68% reported met or exceeded their receiving new EMBA students rose 11.4% expectations for the impact on their career responsibilities WHY STUDENTS PURSUE AN MBA Greater salary is just one of many reasons students decide to pursue an MBA every year. The Graduate Management Admission Council surveyed prospective students to find out what motivated them to look into business school. FULL-TIME MBA MBA PROFESSIONAL Among One- and Two-Year Program Students Among Part-Time And Executive MBA Program Students 47% 25% 22% 17% 15% 15% 8% 3% *Average lifetime earnings from the top 10 career pay business schools SOURCES: U.S. CENSUS BUREAU | BUSINESSWEEK | NATIONAL ASSOCIATION OF COLLEGES AND EMPLOYERS| EXECUTIVE MBA COUNCIL | BUSINESSCARD2.COM | GMAC.COM | CURRANONCAREERS.COM | PAYSCALE KNEWTON GMAT $108,493 $96,594 $72,953 $56,985 $44,169 $82.381 $66,594 $54.693 $47,932 $74.950 $62,540 $49.829 %24 $42.300 $42,500