U.S. Schools Dominate the Financial Times’ 2023 Global MBA Rankings

The Financial Times just released its 2023 Global MBA rankings. Schools located in the U.S. performed well, making up three of the top five spots and twelve of the top fifteen. For the first time in the ranking’s history, Columbia University took the top rank. Notably, last year’s number one ranked program, University of Pennsylvania’s Wharton School was not ranked at all due to not meeting the minimum response threshold on the alumni survey. Poets & Quants notes that while other schools have suffered the same fate in previous years, it has never occurred at such a prestigious program, likely causing embarrassment at both Wharton and the FT. In addition to last year, Wharton has garnered the top rank ten times since the ranking’s debut in 1999.

Also of note, amidst the controversy surrounding the U.S. News’ rankings for medical and law schools, the FT updated its methodology for this year’s ranking. While the ranking still maintains an emphasis on outcome measures, including employment three years past graduation, salary, and salary change from pre- to post-MBA, the FT has also increased the weight given to metrics related to societal goals. These include social mobility, which uses metrics such as financial aid, study costs, and post-MBA earnings, as well as gender parity and student diversity, and sustainability and the environment. 

Rank School Name

1 Columbia

2 Insead, France/Singapore

3 IESE, Spain

4 Harvard

4 Stanford

6 SDA (Bocconi), Italy

7 UC Berkeley (Haas)

8 Cornell (Johnson)

9 Northwestern (Kellogg)

10 Yale

11 Duke (Fuqua)

11 MIT (Sloan)

11 University of Chicago (Booth)

14 UCLA (Anderson)

15 Dartmouth (Tuck)

New Report Examines Changing Costs of an MBA

The cost of obtaining an MBA from a global top 20 program has increased 6.3 percent in 2022, according to the recently published Business Because Cost of MBA Report 2022. The estimated average cost now totals $189,000, including tuition, fees, living costs, healthcare, and materials. This continues the steady upward trend of the last few years; costs averaged $176,000 last year and $168,000 in 2020. 

The report’s 2022 analysis includes only the FT top 20 schools, while last year the analysis included the FT top 20 plus six other top-ranked U.S.-based schools (who had opted out of the 2021 rankings due to the covid-19 pandemic). 

Some of the key findings include:

• NYU Stern is the most expensive MBA program within the top 20 with a total cost of $246,506. It is followed by MIT Sloan ($239,990) and Wharton ($237,160). On the other end of the scale, CEIBS comes in as the least expensive in the top 20 at $84,500, followed closely by SDA Bocconi ($85,525). These are the only two schools on the list with totals falling under $100K. 

• Within the top 20, tuition for the U.S. programs average $225,605, significantly higher than the averages for Europe ($121,583) and Asia ($104,881). 

• Differences in cost between the U.S., Europe, and Asia are magnified by both the strong dollar (making it more cost effective for Americans to study abroad and increasing the expense for international students to study domestically), and differences in average program lengths. MBA programs in the U.S. typically last two years. Those in Europe and Asia run for 12 to 18 months. 

• Between 2021 and 2022, expenses increased the most at Cornell Johnson (+11.4 percent) and Berkeley Haas (+8.6 percent). The most significant decreases, which are enhanced by fluctuations in the currency markets, were reported by the London Business School (-21.1), CEIBS (-15.1), and HEC Paris (-10.5). 

• Tuition expenses, which make up the greatest proportion of costs, are the highest at Wharton ($165,748), NYU Stern ($164,652), Columbia ($160,944), and MIT Sloan ($160,800). They are the lowest at CEIBS ($68,300) and SDA Bocconi ($64,800). 

• Living costs vary considerably based on the school’s location. Within the U.S. schools, the estimated cost of living was highest for Stanford ($72,396), followed by NYU Stern ($67,792), and Harvard ($62,780). Cost of living was the lowest at Duke ($40,608). 

• Healthcare costs are considerably higher in the U.S. than in Europe or Asia. Domestically, the Yale School of Management offers the least expensive healthcare coverage at $5,512. It is important to note that some schools bundle healthcare costs with other personal student costs, making it difficult to compare schools directly. 

While the price of an MBA is significant and prospective students should carefully consider each of the underlying cost components, data shows that the degree positions students well to pay off loans. This is especially true for graduates of elite programs. Prospective students should also keep in mind that all applicants are considered for merit-based scholarships (through Round 2), which are more likely with a competitive application package.  

Profile of Recent MBA Alumni Shows a Shifting Student Base

The Financial Times has published its updated MBA alumni profile. Once again, it shows the ever-dynamic nature of the MBA degree and its student make-up. This year’s profile, in comparison with earlier alumni groups, showcases shifting demographics with greater percentages of alumni who are women, from the Asia-Pacific region, and fewer who went into banking. 

The profile uses data from the FT’s 2022 Global MBA rankings, which includes alumni from the top-100 ranked programs three years after graduation. We’ve listed the key insights below. 

• Reasons for Pursuing the MBA: Similar to the last two years, MBA alumni were most likely to name Personal Development and Management Development as their reasons for obtaining the degree. These two were followed by Improve Career Opportunities and Increase Salary as the third and fourth most highly-rated options. Falling to last place was Start Own Company, which most respondents rated at seven or below (out of ten) in importance. 

• Importance and Value of Courses. Alumni were asked to rate MBA courses in terms of importance and how well their alma mater teaches the subjects. Most alumni believe that General Management, Corporate Strategy, Entrepreneurship, and Finance are important and taught well. Alumni rated Organizational Behavior and Statistics/Quantitative Methods of average importance. However, they rated the performance of their schools higher for teaching Organizational Behavior than Statistics. Finally, Ethics and Environmental Issues and Fintech—two emerging topic areas for MBAs—were rated below average on both importance and performance. 

• Alumni demographics. Over time the makeup of the alumni profile has shifted significantly in terms of region of origin, gender, and post-MBA employment. 

  • In 2006, students from the US and Canada made up 50 percent of MBA alumni, however this proportion has declined steadily. Students from the Asia-Pacific region now make up the highest proportion at just under 40 percent. Students from the US and Canada fall next in line at just over 30 percent. 

  • While the percentage of women alumni held relatively steady at 33 percent between 2006 and 2014, it jumped significantly in 2022 with women now making up 40 percent of alumni three years post-graduation. 

  • The top sectors for post-MBA employment have also shifted over time. Declining steadily, finance/banking decreased from 31 percent of alumni in 2006 to 25 percent in 2014, and is down still further to 18 percent in 2022. The percentage of alumni in consulting has held relatively steady at 15 percent from 2006 to 2014, and has risen slightly to 17 percent in 2022. Not surprisingly, MBA alumni going into IT/Telecoms has increased over time, jumping from ten percent in 2006 to 14 percent in 2022. And, in 2022, e-commerce ranked among the top five employment sectors for the first time.

  • A demographic that has held relatively constant over time is age. The average alumni age, three years post-graduation, was 28 in 2006 and 2014, and increased slightly to 29 in 2022. 

• Since 2006, alumni salaries, both at graduation and three-years post-graduation, have increased by 28 percent. The FT notes that this is lower than the cumulative inflation rate of 37 percent over the same time period. In 2022, reported salaries for alumni three-years post-graduation are down compared to last year, which is the first time salaries have decreased year-over-year since 2014. 

Access the full alumni profile here. 

University of Pennsylvania’s Wharton Named Top MBA by the Financial Times

The Financial Times just released its 2022 MBA rankings and University of Pennsylvania’s Wharton school is at the top. This marks the school’s eleventh return to the first rank, after last receiving the honor in 2011. Columbia placed second, which is its highest-ever showing in the Financial Times ranking. U.S.-based MBA programs had a strong showing overall, taking ten out of the top fifteen spots.