MBA Job Report: Stanford GSB

Stanford GSB, the joint number one North American business school according to international MBA employers (a full list is available here), released its 2014 MBA Employment Report yesterday. Two of the most noticeable differences are a decrease in the number of international students employed at graduation and a shift from technology to finance.

The overall three month employment rate is slightly higher compared to last year, and the median MBA salary has remained the same for the past three years.

Stanford MBA employment rate slightly higher overall but lower for international students

The percentage of Stanford GSB students receiving MBA jobs within three months of graduation has gone up slightly for 2014, compared to both 2013 and 2012. The report states that 80% of graduates had jobs by graduation, rising to 94% three months afterwards. This represents a 4% increase compared to 2013, and a 1% increase compared to 2012.

The MBA job search has been more difficult for Stanford GSB’s international students, since the employment rate for students with non-permanent work authorization has dropped. While 82% of 2013 international Stanford MBA graduates had a job by graduation, only 67% of 2014 Stanford’s international MBA graduates could say the same.

Median MBA salary has remained the same for the past three years

A comparison of the Stanford GSB MBA employment reports from 2012 through 2014 show that median MBA salary has remained the same for all three years, at US$125,000. This year’s median signing bonus – US$25,000 – is also the same as last year’s.

There has been an increase in the mean MBA salary, however, to US$129,618 – a figure that is 3.1% higher than last year’s figure of US$125,592. The median amount for other guaranteed compensation rose by 13.3% from US$30,000 last year to US$34,000 this year.

Stanford GSB grads shift from tech to finance

While Stanford and Palo Alto are known for technology, the highest proportion of this year’s Stanford MBA graduates (29%) took jobs in the finance sector. Most 2014 Stanford MBA graduates working in finance – 12% of the entire class – took jobs in private equity, commanding a median salary of US$170,000. Private equity is also the industry with the highest median MBA salary as well as some of the highest signing bonuses.

The percentage of Stanford MBAs taking jobs in technology went down from 32% in 2013 to 24% this year. Internet services and e-commerce are the two technology areas which have seen the biggest decline. In 2012, 18% of Stanford graduates working in internet services and e-commerce, compared to 9% for 2014.

The percentage of Stanford MBAs working in consulting also went down. Last year, 19% of Stanford MBA graduates went to work in consulting compared to 16% this year.