The most lucrative seven-figure MBA degrees

FORTUNE ^ | 10/14/2014 | John A. Byrne

[SeekAndFind]

(Poets&Quants) — What’s an MBA degree really worth? And how much more money does an MBA from Harvard, Stanford, or Wharton get you over a career than one from Texas A&M, Ohio State, or the University of Iowa?

Those are questions that perplex and confound many deciding whether to get the degree and, if so, where to get it from. Not everyone can get into the most highly selective business schools. So many candidates have to face the question over whether it’s worth getting the MBA from a second- or even third-tier school.

A new analysis done exclusively for Poets&Quants by PayScale, which collects salary data from individuals through online pay comparison tools, shows that the MBA–even from schools that lack global or national caché, delivers hefty seven-figure income over a 20-year period. PayScale used its database of MBA graduates at the top 50 U.S. schools to calculate an estimate of median pay and bonus over the entire 20-year span.

The numbers are conservative. They do not include stock-based compensation of any kind, the cash value of retirements benefits, or other non-cash benefits, such as health care. Estimates are for base salary, cash bonuses and profit sharing in today’s dollars over a 20-year period from from 1994 to 2014. They are not a projection of future earnings. But the estimates show that the MBA degree–despite all the second-guessing over its value since the Great Recession–is one of the surest paths to a lucrative career.

For the most part, the results are what you would expect: The highly ranked, big brand schools tend to deliver the highest earnings over a 20-year period. Harvard Business School’s MBAs come out on top, with median income of $3,233,000. Stanford MBA holders are next with $3,011,000, and Wharton comes in third with $2,989,000. Harvard MBAs,

[SeekAndFind]

If you go to a state university, consider this:

Harvard MBAs, in fact, earned nearly twice as much as MBAs from Texas A&M’s Mays Business School, who pull in $1,781,820 over 20 years.

[Attention Surplus Disorder]

Do they offer Kardashian studies?

[freedumb2003]

>>Harvard MBAs, in fact, earned nearly twice as much as MBAs from Texas A&M’s Mays Business School, who pull in $1,781,820 over 20 years.<<

So you are saying Harvard MBAs get 180K and the others get $90K?

I ran the numbers but didn’t understand which was which...

[boycott]

Do they offer Kardashian studies?

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Or Gates, Zuckerberg, or Clooney studies? Seems some dropouts have done pretty well for themselves.

[boycott]

I would imagine that more of those that attended Harvard, Stanford, or Wharton started on 3rd base. They come from WEALTH.

Harvard, Stanford, or Wharton also find ways to get those that come from wealth or influence accepted. How else do you explain a slacker like Al Gore getting into Harvard? Lots of factors.

[IDontLikeToPayTaxes]

Exactly. It’s not the education, it’s the connections.

[Yo-Yo]

Never underestimate the power of ring- knocking.

[freedumb2003]

Never mind — I reread the article.

They mention Wharton and I have to note that Donald Trumps kids have had the audacity to say, on multiple occasions, that “we didn’t get any extra help” — Ivanka went to Wharton and all 3 were Executive VPs right out of college.

I don’t begrudge them their choice of parents but for God’s sake be honest!

I went to college with one of the Hilton kids (one of Paris’ uncles) and he told me, in no uncertain terms, when you are a Hilton you WILL go into the Family business.

And he did. But at least he was honest.

[SeekAndFind]

RE: I went to college with one of the Hilton kids (one of Paris’ uncles) and he told me, in no uncertain terms, when you are a Hilton you WILL go into the Family business.

So, how to explain Paris Hilton?

[boycott]

Exactly. It’s not the education, it’s the connections.

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Yep. They kind of leave out that part.

[freedumb2003]

>>So, how to explain Paris Hilton?<<

In her own way she did, as her mom guided both her morals and her actions. Celebrity is part 2 of being a Hilton, since most of the guys married super hot sluts who love the spotlight.

I don’t think my buddy went that route — he was mostly a surfer waiting for the next wave and I suspect he just did the office VP thing by day and surfed in the morning and weekends (and probably still does).

I am sure he married into hotness since that was the other part of being a Hilton.

[Scoutmaster]

Wealth or influence plays a much larger role in Harvard College admissions than in Harvard Business School admissions, or at least that used to be the case.

[SamAdams76]

Exactly. It’s not the education, it’s the connections.

True. However, it is possible for a nobody like me to outperform even the Harvard MBA grads. Even if I don't get a raise for the next 20 years, I'll outperform their 20 year average of $3,233,000. Hard work and ambition is what it really comes down to. America is full of people who started with nothing and became well off. Let's hope it stays that way.

[Taliesan]

Indeed. I got my MBA from a state university 20 years ago and these numbers are not difficult, God willing and the creek don’t rise. And assuming I don’t chuck it all and become a bohemian artist. And so on.

Should I even point out that correlation is not causation?

[Sergio]

bkmk

[Jack Hammer]

All the rich guys I ever met (and I’ve met a few) are guys who went into business for themselves, rolled up their sleeves, got their hands dirty, and worked like dogs for long hours and a h*ll of a long time.

I did meet a Harvard MBA who got rich, but he was the exception, not the rule.

And he was self-employed, not a corporation guy.

[minnesota_bound]

How many business’s and individuals do they have to sue to justify that salary each year?

[minnesota_bound]

#10 Her mother was a golddigger as was her grandmother so.... family business. Paris just did not have sex with wealthy guys, just rich ones.