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Salaries of masters in management graduates from leading business schools who now work in finance have jumped sharply in recent months, data from the FT’s new MiM ranking shows
In the latest sign of a resurgence in the sector relative to other jobs, earnings of those in banking, financial services and insurance rose 4 per cent from 2023 to an average of $88,518 in early 2024, three years after completing their degree. That was a higher annual rate of growth than achieved by average MiM graduate earners in other sectors, led by consulting at $85,000 and technology at $84,000.
The data is drawn from research for the latest FT Masters in Management Ranking of programmes at 100 leading business schools worldwide, led by the University of St Gallen. The Swiss school returns to the top after dipping to second last year behind HEC Paris. HEC drops to second for 2024, while French school Insead — newly ranked for MiM — comes third.
Among the 16 schools in the highest tier of the ranking, six are French and two are Chinese — Shanghai Jiao Tong: Antai and Tongji. Others include London Business School, Nova in Portugal, Bocconi in Italy, and Prague University in the Czech Republic.
The salary rise for MiM alumni working in finance follows a similar trend of relative earnings growth for graduates of masters in finance courses now in the sector. Alumni of these specialist programmes earn more overall — on average nearly $90,000 in 2024 compared with $81,000 for MiM degrees.
Across all sectors, male MiM graduates still earn more than women, although the gender pay gap fell to its lowest level in 2024, at 9 per cent, from a recent peak of 17 per cent in 2019.
Business schools are ranked on criteria including alumni salaries three years after completing the MiM; career progress; the quality of the alumni network; gender and international diversity of students and faculty; and commitments to environmental, social and governance factors.
Participation in the FT rankings is voluntary, and schools must be accredited by one of the two leading agencies, AACSB and Equis, as well as meeting other criteria, including minimum class size and a sufficient number of survey responses from alumni.
MiM degrees are typically studied by graduates with no prior professional experience, and have proved increasingly popular with students as an introductory training in business. They are relatively affordable compared with an MBA and typically last for one year.
Originating in Europe, the MiM has since spread more widely, with some leading US schools now starting to offer the qualification. The University of Chicago’s Booth School of Business has just launched a one-year masters as a “stackable” qualification, allowing graduates to later receive an MBA with a single further year of study, after some professional experience.
Top school: University of St Gallen
St Gallen has regained its crown in the FT Masters in Management 2024 Ranking. The Swiss school held on to the top spot for careers services and rose in the alumni network rank, from third to first, as rated by graduates. Alumni surveyed for the ranking praised the highly driven and diverse cohort. Leo Cremonezi
Alumni salaries are weighted to reflect variations between sectors and converted to US dollars using IMF international purchasing power parity rates. After these calculations, three south Asian business schools recorded the highest average salaries in the ranking: the Indian Institutes of Management in Ahmedabad ($156,010), Bangalore ($152,765) and Calcutta ($144,385). Outside Asia, HHL Leipzig Graduate School of Management recorded the next highest weighted average salary at $140,418, just ahead of St Gallen at $140,020.
The University of St Gallen — followed jointly by London Business School and Nova School of Business and Economics — ranked top for aims achieved, as assessed by alumni. St Gallen was also top for student assessments of career services and its alumni network, with Germany’s WHU-Otto Beisheim School of Management second in both categories.
Nearly half of the 100 top schools reported at least as many female and male students, with 16 institutions achieving strict gender parity, which scores highest. The schools which ranked highest for gender diversity and a greater share of international students and faculty also tended to score higher for more ambitious carbon reporting and net zero targets than lower ranked schools.
Skema, followed by Excelia Business School, both in France, ranked highest for teaching content focused on environmental, social and governance topics. SDA Bocconi/Università Bocconi of Italy, followed by IE Business School of Spain, scored highest for carbon footprint measures.
Alumni of Spain’s Iese Business School and the University of St Gallen reported the joint highest overall satisfaction, a figure not used in the ranking calculations.