Banks in US aim to hire more MBAs

The average number hired is likely to rise from 12 to 13, says the report by the US-based Graduate Management Admission Council (GMAC). Firms surveyed ranged from bulge bracket banks to small boutiques.

Venture capitalists were more bullish, forecasting a doubling of MBA hiring this year from two to four students per firm.

The survey also found that banks and fund managers expected their MBA hiring in 2004 to rise 54% over the 2003 figure.

They expected to pay salaries ranging between $45,000 (€42,500) and $100,000 to new MBA hires this year, compared with $35,000 to $75,000 paid by accountancy firms.

About 65% of new MBA hires in investment banking and fund management also receive a performance-related bonus, while more than 70% receive a signing-on bonus.

The survey covered 690 companies in different industries. About 85% were based in the US and the rest in Europe or elsewhere.

Dave Wilson, chief executive of GMAC, said firms were favouring MBAs who had already had experience of working in their industry, as that reduced training costs.

"Mid-career professionals would be well advised to continue to rack up experience in their current fields before completing their MBA degrees or while they pursue a part-time or executive program.

'They'll increase their value in the present and be well positioned to make a change in the future," he said.