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This is FORBES’ 10th biennial ranking of the best business schools around the globe where we ask one question: Is an MBA worth it? It is not an easy answer when the costs in terms of tuition and forgone compensation can top $300,000 at the top schools.
Getting a graduate degree is about more than dollars and cents, but for most prospective MBAs applying to schools is about a career change and/or greater financial rewards. The FORBES ranking is based solely on the median returns on investment achieved by the graduates from the class of 2012. But returns for individuals vary wildly and the results for graduates from business schools outside the top tier are often weak.
We looked at more than 100 schools and surveyed 17,500 alumni regarding their pre- and post-MBA compensation, career choice and location. We heard back from 25% of those graduates. We excluded schools from the rankings where we did not hear back from at least 15% of their alumni. We also did not include schools where alumni had a negative ROI after five years.
We compared the alumni earnings in their first five years out of business school to their opportunity cost (two years of forgone compensation, tuition and required fees). We measure total compensation, including salary, bonuses and exercised stock options. We assume that compensation would have risen half as fast as their post-MBA salary increases had these alumni not attended business school.
We rank the schools solely on their "5-year MBA gain". It represents the net cumulative amount the typical alumni would have earned after five years by getting their MBA versus staying in their pre-MBA career. Wharton ranks on top for the first time ever in the FORBES rankings with a 5-year gain of $97,100.
London Business School rated as the best two-year international program with a gain of $119,100. IMD is the best one-year program at $194,700. One-year programs have an inherent advantage under this methodology thanks to the smaller foregone costs with relinquishing only one-year of salary under the shorter programs.
We adjusted the median 5-year MBA gains for cost of living expenses and discounted their earnings gains using a rate of 4.1% which is the discount rate most recently used by large companies in their pension funds. Low rates help prop up the 5-year gains. We also discounted tuition to account for students who pay in-state rates and for scholarships and the non-repayable financial aid that schools dole out. We did not deduct taxes from the earnings gains or account for the debt repayments from student loans. Debt is an increasing burden for graduates with a median value of $75,000 for those alumni who replied to us and finished owing money.
The pre-MBA and 2016 salaries listed are converted using three-year average exchange rates. The 5-year MBA gains use a five-year average for the exchange rates.
By Kurt Badenhausen and Christina Settimi
Additional reporting: Grace Minassian
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发表于 2017-9-28 20:57:47
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发表于 2017-9-29 11:32:51
