Tuesday, July 29, 2008

Post-MBA careers: More Finance, Less Industry...

Just got back today from Bombay, ending my 4 1/2 month travels before I start my MBA at LBS this August. I ended up traveling to Brazil, Ecuador, Thailand, Laos, Vietnam, Cambodia and India. If anyone is interested about the cost of traveling for 4 1/2 months: I burnt about $9K and used up 90K in frequent flier miles. As for my plans of a pre-MBA internship, that never materialized. Traveling is just too much fun, it's very hard to start thinking about work once you're on the road. To anyone considering pre-MBA travels, I highly recommend it. It also allowed me to meet up with 8 of my future classmates around the globe.

Anyways, to the topic of this post. There's a very interesting Employment Report (2007) which LBS publishes on its website. It reveals some interesting stats. Looking at data from 2003 and 2007, it seems like more and more MBAs go for Finance at the cost of Global Industry. Here's the breakdown of post-MBA employment by sector:

Why is that? The average starting salary per sector might explain this. In 2007, the average starting base salary including year end bonus for LBS grads in Financial Services was about $183K, compared to "just" $139K for Global Industry. Also, the average sign-on bonus of $48K in Financial Services is juicier (vs $24K for Global Industry, exactly the half). Simply put, graduates are going to where the money is.

More interesting data: If you ever wondered how many people actually switch careers after their MBA, the report also casts light on this (showing where people came from for each of the three sectors).

I personally plan to go into Global Industry as my post-MBA goal. You probably make as much as in Financial Services - on an hourly basis.

Update: Given the financial crisis and downturn in the economy, the trend described will most likely reverse for the class of 2009. Go Industry!

1 comment:

Josh Hohman said...

Hi, my name is Josh, and I'm a recent Stanford GSB graduate. I’d like to offer your readers some helpful information. I recently surveyed my classmates, friends and colleagues, and asked them to discuss their application strategies, as well as advice for entering MBA students, for Stanford, Harvard, Columbia, and Kellogg. I compiled the responses into a FREE 21-page report available at http://www.ExpertCollective.com. Stanford MBA applicants tell me that the information is really helpful in filling-out their essays with detailed and specific information, while the entering first-years appreciate the advice on how to make best use of the 2 years at business school. I’d love to have you review the full version of the report (80+ pages) if you think you’re readers might be interested. Please send me an email at josh@expertcollective if you’d like me to email you a copy to review for your blog.

Best wishes for your success!

Josh Hohman
Stanford MBA 2005