Information on MBA Salary

For many of students, deciding to apply MBA degrees is to boost their job prospects. Besides also to find out new opportunities, but, pursuing an MBA degree will also lead to significantly higher salaries. Having an MBA degree, the potential for earning will far surpass that of employers with no college education–and even those with undergraduate degrees.

With an MBA degree you can expect to earn 50% more than you were earning before you received your MBA. This is quit significant incentive for furthering your education. Your investment tuition as well as your time will pay off in dollars, job satisfaction and  recognition

MBA Salaries for the First Year

Based on The National Association of Colleges and Employers data  in 2006, average MBA salaries were $90,000. First-year MBA graduates’ salaries average between $50,000 and $75,000–with more than 40% earning $75,000 and more.

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The average Salaries of first-year MBA graduates in different career fields 2006 base salaries plus additional compensations, as compiled from  The Graduate Management Admission Council (GMAC), were as follows:

  • Non-Profit/Government – $73,125
  • Products/Services – $94,558
  • Consulting – $101,736
  • Health Care – $111,477
  • Energy/Utilities – $100,263
  • Finance – $103,122
  • High Tech – $98,621
  • Manufacturing – $98,417

In addition, you will have to weigh the benefits of accepting a position with a higher base salary against a position with a lower salary that offers bonuses and other perks. These perks can include annual bonuses, car allowance, tuition reimbursement, relocation costs and more.

Factors for MBA Salary

The information on average salary is, of course,  just a guideline to help you know what to expect. The number might higher or much lower, depending on many different factors that affect salaries, including:

  • Geographic location
  • Your school’s reputation
  • Post-MBA role
  • Undergraduate major
  • Industry you are employed in
  • Cost of living
  • Pre-MBA experience

Experience Factors

As your length of time on the job increases, so will your income. Below is a sample of average salaries you can expect as your time on the job increases:

  • 20 years or more – $103,600
  • 10 to19 years – $94,038
  • 5 to 9 years – $74,053
  • 1 to 4 years – $56,090
  • Under 1 year – $50,427

Geographical Location

Different states and cities throughout the U.S. have different average incomes based on their economy, the vitality of their businesses and the cost of living in that location. Some average salaries of MBA graduates based on state is as following:

  • Florida – $67,130
  • Pennsylvania – $78,536
  • California – $96,599
  • New York – $95,083
  • Massachusetts – $89,267
  • Illinois – $83,998
  • Texas – $78,532

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