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3 Important Factors about MBA Salary

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Although money may not be enough to buy happiness, a larger paycheck would not make you miserable. Prospective MBA students have one of their top professional goals: to increase their earning potential. Studies from alums prove that this is possible. Nearly 9 out of 10 MBA alums believe their degree has increased their earning potential and that the overall value of their degree is excellent to exceptional.

What is the actual salary of MBAs? It includes the average MBA starting wage for different industries and MBA programs and factors that can affect your earnings as an MBA graduate.

Executive MBA College in Mumbai by IIT Bombay and Washington University in St. Louis claims that an Executive MBA professional’s salary increases faster than a regular MBA professional. 

What can you do to increase your salary after an MBA?

MBAs are often paid more than other graduates, whether pursuing a business master’s degree or another program. An MBA degree will help you increase your salary.

Global recruiters responded to the annual Corporate Recruitment Survey of the Graduate Management Admission Council (GMAC). GMAC received nine hundred forty-one responses. This survey was designed to help global recruiters understand average MBA salaries. The average starting salary of MBA graduates is not likely to fall and is significantly higher than that for similar MBA degrees.

The average starting wage for MBAs in 2021 was between 22 and 40 percent more than for bachelors. 71% of corporate recruiters agree with the statement that employees who have completed business school are more productive at work.

Not only recruiters notice the potential earnings of MBA graduates. 79% of graduate business alums strongly agree that their degree has increased their earning potential.

How much Salary does an MBA graduates earns?

According to the most recent GMAC Corporate Recruiters Survey data, US companies intend to offer MBA hires a median starting wage of US$115,000. This is significantly higher than Master in Management hires (US$95,000) and bachelor’s degree employs (US$75,000).

Fortune 100 companies and the three big three major industries that employ MBA graduates (consulting, finance and technology) are more likely to see a higher compensation premium. The median salary for MBAs in consulting is US$145,000. 

Your MBA salary may be even higher. The average MBA salary was US$133,511 to US$144,956, according to a 2021 study by the Forte Foundation.

A graduate package could include additional compensation, such as a signing bonus. This will increase your salary. The most common example is in the United States, where 76% offer a signing bonus that could reach up to US$10,000.

What can influence your MBA salary?

Most MBA graduates will be earning high salaries once they finish their degrees. However, many factors can affect your annual salary and return on investment (ROI).

Remember that your total MBA compensation package could include stock options, signing bonuses, performance bonuses, or performance bonuses. This will impact your total compensation. This article will refer to the base salary. However, your complete compensation package may include more.

Each of these factors will be discussed in detail later in this article. For now, here are the key things that can affect how much you make after an MBA.


A specialized program in business management may help you land a better job since you will be working in a specific field. Executive MBA graduates can earn higher salaries because they have more work experience than traditional MBA students.

It will take some time to see a return on your investment due to the cost associated with your program. It takes two-year MBA students approximately 3.5 years to recoup their investment. You may also be affected by the fact that you borrowed money to pay for your MBA degree.


MBA salaries are generally higher in the US than elsewhere, but it is possible to earn still a substantial wage working for a multinational company in Europe and Asia. There are also differences in MBA salaries depending on where you live.

Business School

A top-ranked school will increase your chances of earning a high salary once you have completed your degree. Prestigious MBA schools will have strong alum networks and connections with companies, which can increase your chances of landing a high-paid job after graduation.

No matter where you go, your MBA will still be able to help you increase your salary in comparison to those who do not have a business administration degree.


MBAs are paid higher in certain industries than others. Graduates who choose to stay in finance and consulting after earning their MBA students make as much as US$200,000. This is not to mention the high salaries that come with performance bonuses.

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