MBA Degree Salary Overview

Everything you need to know about MBA degrees and salary expectations is right here.

By Sarah Stevenson

The relationship between MBA education and salary is a complex one. To some extent, it's subject to the outside pressures of the economy; with all the ups and downs in the job market, it should come as very little surprise that salary offers aren't as promising as they've been in the past, according to the National Association of Colleges and Employers (NACE).

Even for those with an MBA degree, salary offers haven't shown much of a change over previous years. The good news is, there are a number of factors that affect MBA degree salary earnings outside of the year-to-year fluctuations of the market.

What Factors Influence Your MBA Degree Salary?

Obviously, your level of experience makes a big difference to the earnings you'll receive. Entry-level MBA graduates from the class of 2009 earned an average MBA degree salary of $70,938 upon starting their first jobs, while those who were hired by employers with whom they'd completed an internship or work experience received an average of $87,000, the Graduate Management Admissions Council (GMAC) reports. Geographic location is also a consideration, since the cost of living varies depending on the city and state of employment.

Another major factor is the field or industry in which you choose to pursue an MBA. Salary offers vary widely between the government or non-profit sector and private sector industries, for instance. Also, your job function—accounting, human resources, sales—can affect your earnings, with those involved in management commanding top dollar.

Our MBA salary charts below include information on a number of key industries and jobs. All information comes from the GMAC's 2008 Alumni Perspectives Survey and the Bureau of Labor Statistics.

MBA Degree Salary by Industry

Nearly half of all MBA graduates find work in banking, investment banking, manufacturing, consulting, government, education or finance; however, lucrative work is available in a vast array of other industries, from energy to technology to healthcare. The GMAC survey aggregated data from a number of subcategories into the following major industry classifications for the purposes of reporting MBA salary information.

Industry Category	Subcategories	Median Annual Salary 2009
Consulting	Health care consulting, IT consulting, management consulting, HR consulting	$103,750
Energy/Utilities	Energy, utilities, mining	$105,150
Finance/Accounting	Accounting, banking, investment banking, insurance, venture capital	$97,250
Health Care	Biotechnology, healthcare, health insurance, pharmaceutical	$101,000
Technology	Engineering, information technology, e-commerce, telecommunications, science	$96,500
Manufacturing	Aerospace, defense, automotive	$99,936
Nonprofit/Government	Education, government	$75,000
Products/Services	Arts and entertainment, construction, consumer goods, food service, hospitality, retail	$90,000

MBA Degree Salary by Job Function

Whether you're overseeing a set of projects, a group of employees, or the company payroll, the type of management function that your job encompasses also has an effect on your salary.

Job Function	Occupations Include	Median Salary 2008	Management Salary Range 2009
Marketing/Sales	Product management, sales management, communications	$92,500	$47,660 – $149,390
Operations/Logistics	Purchasing, engineering, production	$92,594	$45,780 - $146,030
Consulting	Strategy, business development, product management	$105,000	$42,550 – $134,820
General Management	Entrepreneurial	$107,554	$45,780 – $138,960
Finance/Accounting	Accounting/auditing, banking, financial analysis, real estate	$95,000	$54,760 – $138,010
Human Resources	Staffing, training, compensation/benefits	$74,000	$49,560 – $164,270
IT/Management Information Systems	Systems analysis, telecommunications, e-commerce	$88,000	$69,900 – $143,590

Additional Benefits for MBA Degree Holders

If you hold an MBA degree, salary isn't the only worthwhile compensation that jobs provide. Most employers also grant benefits above and beyond annual earnings. Even if you're just starting out as an MBA graduate, you might receive a signing bonus as well as a benefits package. Besides those perks, the most common additional forms of compensation for MBA holders in 2008 were performance-based bonuses, stock options or purchase plan, profit sharing and tuition reimbursement.

The outlook for MBA degree salary may change from year to year, but an advanced degree is always a good investment for your future career, especially if you're looking to boost your job prospects beyond what you can achieve with an undergraduate degree.

_{Sources: Bureau of Labor Statistics, 2009; gmac.com; naceweb.org}