Harvard Placement Rebounds Even As Pay Slips

Harvard Business School. Photo by Gren Hren for Harvard Business School

The coronavirus pandemic is not over, and anyone who suggests that it is should view Harvard Business School’s new MBA employment report, released today (Nov. 22), as a warning against optimistic forecasts. HBS reports that the overall median salary increased only slightly for this year’s graduates, while the overall median compensation dropped to $ 189,850 from $ 193,200, a decrease of about 1.2%. This comes a year after HBS reported an average pay package increase of about 1.5% last fall; Harvard’s total salary in 2021 is still lagging in 2019 by about a third of a percent.

Clearly, when it comes to MBA job prospects, the crisis continues. However, placement rates rebounded in 2021, with 96% of Harvard MBAs seeking work receiving an offer three months after graduation and 92% accepting, compared to 90% and 83%, respectively, in the depths of a health crisis that changed hiring. and internships alike.

“The HBS class of 2021 weathered quite a few setbacks with the rapid changes to its internships in the summer of 2020, some of which were withdrawn entirely, some of which moved quickly to all remote,” notes Kristin Fitzpatrick, CEO of MBA Career AND professional development for HBS. Harvard MBAs overcame the challenges of hybrid learning “and a world changed forever,” he says, “to secure fabulous opportunities in 335 organizations around the world.”

HEDGE FUNDERS BIG JUMP IN COMPENSATION

The overall average base salary for Harvard MBAs increased only slightly in 2021 to $ 150,500 from $ 150,000, while signing bonuses remained flat at $ 30,000 and performance bonuses increased only slightly, to $ 37,000 from $ 35,000. Fewer HBS graduates reported receiving any type of bonus, which explains the drop in overall compensation. Total median salary includes base salary, login bonus, and other guaranteed compensation, adjusted for the percentages of graduates receiving a signing bonus and other guaranteed pay. This year, the first was 51% and the second 65%, up from 60% and 72%, respectively, in 2020.

Consulting once again set the pace for all other industries, with a median total salary for Harvard graduates hired by MBB firms and other consulting firms up to $ 211,800, an increase of 8.4% over last year’s mark. of $ 195,336. In 2019, the multitude of consultants reported $ 194,880 in total pay. Offers accepted in 2021 consisted of a median starting salary of $ 165K, a signing bonus of $ 30K awarded to 95% of those going to the field, and another guaranteed compensation of $ 30K, reported by 92% of students. .

At the higher end of the pay scale, there were once again 8% of the last class to head for hedge funds and investment management jobs, for whom the average total compensation amounted to a staggering $ 279,900, versus $ 203,307, with median salaries of $ 165,000, more. of $ 152,682, login bonuses of $ 50,000 (from $ 27,500), reported by 50% of students, and a whopping $ 145,000 in other guaranteed compensation earned by 62% of graduates, compared to $ 132,500 on last year. The latter is the main cause of the 38% increase in total compensation for the multitude of hedge funds.

Of course, not all HBS graduates chase (and capture) money. Some are less interested in salary and more in making a positive mark on the world, although of course the two goals are not always exclusive.

“We saw a strong group of students committed to positions in social enterprise and fourteen of our graduates joined the 20th Leadership Fellows class, a once-in-a-lifetime opportunity for a select group of graduate students to experience high-impact management positions in nonprofit and public sector organizations for a year at a competitive salary. “Says Fitzpatrick.” We look forward to seeing how the Class of 2021 will make the world a better place! “

HOW HARVARD IS COMPOSED WITH ITS M7 COMPANIONS

How does Harvard’s employment report compare to the other M7 schools that have released employment figures so far? Not very well. At Northwestern Kellogg School of Management, 97.1% of two-year MBA graduates in 2021 received offers three months after graduation, compared to 95% last year and 96.1% accepted, compared with 93%. Pay also increased, with median starting salaries up to $ 150,000 from $ 144,000, leading to a 2.1% increase in total compensation, to $ 175,800 from $ 172,200. The bonuses, which 86% of graduates reported receiving, were the same at a median of $ 30,000.

At MIT Sloan School of Management, while median salaries and bonuses were flat this year at $ 150,000 and $ 30,000, other compensation, reported by more than 70% of the class, skyrocketed from a median of $ 11,000 to $ 34,000. , which generated a jump of 8.5% in total. compensation to $ 195,600 from $ 180,223, a much healthier rate of pay increase than last year’s 3.8% and even better than the hefty 7.6% the Class of 2019 enjoyed.

The Wharton School at the University of Pennsylvania reports a 99% offer rate after three months, a new school record that closed books at the 2020 mark of 93.5% offers after 90 days. Wharton’s median salary jumped $ 5,000 this year after lying flat in 2020, to $ 155,000, driven by gains in technology, fintech and social impact, among others. Median salaries for consultants ($ 165,000) and bankers ($ 150,000) were unchanged for the third year in a row.

And at Chicago Booth School of Business, the median salary grew $ 5,000, to $ 155,000, with consulting, the top industry for Booth graduates for the third year in a row, to $ 165,000 from $ 160,000, and finance, once again, the second place, growing even more, to $ 160,000 from $ 150K. Median bonuses increased to $ 35,000, led by $ 50,000 for finance graduates and $ 40,000 for technology graduates, generating a total compensation total of $ 178,450, up 4.9% from a year ago. When it came to looking for work, 92.9% of Boothies had job offers upon graduation, basically the same as in 2020, and 97.7% had offers at three months, a modest increase. The big jump came in acceptances, which grew to 96.4% this year, compared to 91.4%.

The Columbia Business School report is due in the next few weeks; Stanford Graduate School of Business will publish its report in January.

Check out the following pages for more salary breakdowns and trends from Harvard’s MBA Class of 2021 employment report.

AND SEE OUR COVERAGE OF HARVARD’S PEER SCHOOLS EMPLOYMENT REPORTS:

KELLOGG NORTHWEST MANAGEMENT SCHOOL

THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA

CHICAGO BOOTH SCHOOL OF BUSINESS

MIT SLOAN SCHOOL OF MANAGEMENT

Smooth sailing for Harvard graduates looking for work in 2021 … but pay was another matter

Unlike many of its peer schools, Harvard does not list the lowest and highest salaries for its graduates, instead preferring to post the median salary in the 25th and 75th percentiles. This year, the highest 75th percentile bases listed were $ 180 thousand in venture capital and $ 178,750 in private equity, and $ 175,000 in hedge funds / investment management, same as last year. The lowest 25th percentile base salaries of $ 110,000 were in government and nonprofits, up from $ 100K last year.

In the startup scene, Harvard saw 12% of its 2021 MBA class become entrepreneurs, joining a company that is less than a decade old or still private, up from 10% in 2020 and 8% Five years ago. The median base salary for those entrepreneurs was $ 150,000, up from $ 140K last year. By far the top industry for startups was technology, with 48% of HBS entrepreneurs engaged in software, e-commerce, or the like; healthcare came second in distance with 16%. Still, about half (49%) of Harvard entrepreneurs stayed in the Northeast and 26% went west.

Spring on the HBS campus. Photo: Hensley Carrasco

DON’T MISS ANOTHER PAID YEAR OF MBA RECORD AT HARVARD BUSINESS SCHOOL (2020) and LEARN ABOUT THE HARVARD BUSINESS SCHOOL MBA CLASS OF 2023

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