As we mentioned last month, now appears to be a fairly good time to head off to business school. Around 92% of companies in the U.S. plan to hire MBAs, up from 80% in 2014. Plus, pay is increasing, with the average salary for graduating MBAs up $5,000 year-over-year. But it’s not just graduates who are seeing dollar signs. MBA interns are getting paid too.
Investment banks and consulting firms are being particularly aggressive when it comes to pay for interns, offering signing bonuses in many cases for top talent. Investment banks handed out signing bonuses to 73% of Harvard Business School interns last year, up from just 16% a year earlier, according to Poets & Quants. That’s a huge jump.
Bonuses for interns aren’t as common at consulting firms but base pay can be more lucrative. At Northwestern University’s Kellogg School of Management, for example, consulting interns earned a median $10,600 monthly paycheck, which works out to an annual salary of over $127,000. One unnamed management consulting firm paid a Columbia Business School intern $22,192 a month, or an annualized salary of more than $266,000. Across the pond, a London Business School intern earned $32,000 per month at a consulting firm.
But overall, looking across all industries, the best program to attend if you want to get paid as a summer intern is the University of Chicago's Booth School of Business. Median take-home pay there reaches $8,200, better than Harvard ($8k), Wharton ($8k) and Stanford ($6,800), according to the research.
Interns at all top schools got paid fairly well, with the exception of INSEAD, the self-proclaimed “business school of the world.” Average monthly pay for INSEAD interns was just over $3,000, by far the lowest among the top 25 schools. The University of Washington’s Foster School finished second to last with average intern pay of $5,600 per month.
All that said, you don’t necessarily need an MBA to earn a high-paying job. The Wall Street Journal just published an article on how most private equity firms are no longer demanding their associates go back to business school.
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The Billion-Dollar Man (Bloomberg)
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Big Gift (NY Times)
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CFA Horror Stories (Business Insider)
In Southern California, the CFA exam location used to be located right across the street from Disneyland. People would give up on traffic and just illegally park on the street, knowing they would get towed. Elsewhere, a CFA test taker nervously dropped his calculator directly in the urinal…then grabbed it and went right back to work.
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‘Welcome to the Jungle’ (WSJ)
A second-year analyst at Barclays sent out an email to all new interns titled “Welcome to the Jungle” that is being shared across Wall Street. It’s surely meant to be a bit tongue-and-cheek but is awful either way. The Journal named the analyst, too. He’s likely hiding under his desk currently.
Quote of the Day: “There isn’t really much more to say. By the time it reached the end of its HBO run in 2011, “Entourage” had grown staler than last night’s Axe body spray. The passing of a few more years has not improved the aroma. Watching the movie is like finding an ancient issue of a second-tier lad mag — not even Maxim, but Loaded or Nuts — in a friend’s guest bathroom. You wonder how it got there. You wonder how you got there.” – The New York Times review of “Entourage” the movie
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