MBA salaries 2007- for setting your target

Within countries, MBAs in capital cities and especially financial centres, can expect salaries 20% higher than in smaller cities. The UK reports the highest average MBA salary in the 2007 study, at US$108,372 with a strong influence from London based recruiters. MBA salaries reported by companies recruiting in Western Europe, Central, Eastern and Southern Europe, reveal wide variations. From 1996 to 2007, average salaries for MBA graduates in Asia have risen an impressive 44% in dollar terms. Singapore reports the highest average salary in the region at US$84,983. Average Latin American MBA graduate salaries have increased by 27% from 1996-2006, to US$69,400 (compared to US$62,600 in 2006). Mexico has the highest average salary at US$78,063.

Regional headquarters	Salary (US$)
United Kingdom France	108,372 97,692
Germany	89,141
Netherlands	88,091
Spain	84,434
Russia	48,847*
Greece	43,615
Hungary	43,058
Romania	36,905

*no banks included in sample
Source: QS TopMBA.com International Recruitment Survey and Salary Report 2007

Regional headquarters	Salary (US$)
Singapore	84,983
Hong Kong	62,500
Taiwan	45,000
China	36,307
India Thailand	<25,000> <25,000

Source: QS TopMBA.com International Recruitment Survey and Salary Report 2007

Regional headquarters	Salary (US$)
Mexico	78,063
Brazil	72,500
Venezuela	67,500
Argentina	42,500

Source: QS TopMBA.com International Recruitment Survey and Salary Report 2007

The cost of living

MBA graduates should consider the cost of living when comparing salary packages across regions: the real, versus the nominal wage a company and country offers. The OECD publishes annual research comparing purchasing power between countries (a good proxy for the cost of living). According to the OECD, the purchasing power in Mexico is 24% more than in the US. So, even though the survey reveals that MBA graduates are paid 23% less in Latin America than in North America, graduates working in Mexico will enjoy a standard of living comparative with that of their US counterparts. By contrast, purchasing power in Japan is 36% lower than in the US, so, the higher cost of living will result in a lower standard of living if the same salary is paid as elsewhere. Hungary’s purchasing power is 55% higher than that of the US, which means that an MBA earning 44% less in Hungary will still enjoy a higher standard of living than a US graduate.