Stanford University’s recently published Class of 2013 Employment Report reveals some truly remarkable figures. With signing bonuses, benefits, and other numbers taken into consideration, on average Stanford MBAs reportedly make a base salary of $125,000. With so many new grads struggling to find work in their field or area of study, this number seems unfathomable. However, many economists suspect that the ‘Stanford’ name might just have something to do with new graduate success rates.
According to Business Insider, “This year’s highest paid Stanford MBA student reported receiving a guaranteed annual bonus of $337,500 – a sum that does not even include potential tuition reimbursement, relocation expenses, auto allowances, profit sharing, stock or stock options.” This recent gradate, who has an undergraduate business degree, no more than five years of work experience, and a newly earned graduate degree will receive a minimum of $522,500 as their first-year compensation in a private equity position. This annual salary, and all of the monetary benefits that accompany it, result in a number that few new grads can even begin to fathom.
According to Stanford’s recent reports, these kinds of figures aren’t uncommon for their graduates. 77% of the 2013 class had job offers by graduation, and 94% reported receiving job offers only three months after commencement, which are similar to past reports of new grads. However, these percentages differ greatly from national averages, which report that the majority of new grads are forced into positions in hospitality, retail, and other fields that don’t require a college degree. Northeastern University reports that as many as 36.7% of graduates from the class of 2013 are “mal-employed,” or have jobs that don’t require proof of higher education, and are making 40% less than their peers.
Higher education institutions like Stanford are certainly known for churning out major career success stories. Big names in business like Lazard Chief Executive Kenneth Jacobs, founder and CEO of Ebay, John Donahoe, Time Warner COO Jeffrey Bewkes are just a few of the many impressive alumni from the Graduate School of Business at Stanford. Is a career in business and a degree from an Ivy League or highly reputable school like Stanford the only way to find financial success? And how does attending a non-Ivy League school affect your likelihood of receiving a job offer?
How do you weigh in on Stanford’s recent report of graduate job placement?