The Master of Business Administration, or MBA, is the standard degree in the business field for those aspiring to mid- or upper-level management positions. Some business students and professionals go on to attain the degree because it can result in a substantial increase in pay. Pay for those holding the MBA varies by which field of business they go into. While there is no minimum salary for the MBA graduate, understanding the pay scale for various careers in the business sector can provide a guide of what salary to expect.
Salary by Job
The salary of those holding the MBA varies in part to the position they hold. For example, PayScale notes the disparities in salaries between financial analysts, financial controllers, chief financial officers, general operations managers and information technology managers. For example, senior financial analysts make between $64,154 and $76,858 per year, at the time of publication; those working as the vice president of operations make between $95,000 and $147,231. Each type of position comes with its own responsibilities and thus its own pay scale.
Experience also plays a role in determining the salary of someone holding the MBA degree. Those with less than one year of experience make closer to the bottom end of the MBA pay scale. According to PayScale, those with less than one year of experience make an average salary of $44,169, at the time of publication. By comparison, those with one to four years of experience could expect to earn more than the low end of the pay scale and average $56,985 per year.
Location also factors into the salaries obtained by MBA graduates. According to PayScale, the average salary for MBA graduates in California is $97,391, at the time of publication. MBA graduates in New York, by comparison, make an average salary of $91,061 per year. MBA graduates in other states make less in annual pay. For example, those in Florida average $69,068 per year, while those in Ohio made $69,407 per year, at the time of publication.
Company size also factors into the minimum pay received by the MBA graduate. Small companies tend to pay less than large corporations. PayScale notes that companies with one to nine employees pay MBA graduates an average of $59,597. Companies with 10 to 49 employees averaged $65,165 per year, while those with 50 to 199 employees averaged $83,651, at the time of publication. From there, the pay scale differs little. Companies with 200 to 50,000 employees average anywhere from $80,713 to $90,651 per year.