Now that there are Goldman Sachs VPs apparently earning seven figures for their efforts in M&A, getting paid $650k as a newly certified MBA in private equity won’t appear a very big deal, nevertheless it’s value noting on condition that MBAs do not essentially have prior finance expertise, and so they might receives a commission carried interest on prime.
Not all MBAs going into private equity get this quantity. If you go to a second tier enterprise faculty, you’ll not be paid $650k upon graduating. However, in case you go to Stanford Business School, and also you’re one of many fortunate ones, $650k is a risk.
The quantity is derived from Stanford’s newest MBA employment report for the class of 2021. 15% of the category went into private equity, the place they earned the cumulative pay packages beneath. (*29*) $650k was the max, the imply was $364k and the median was $339k.
Stanford MBAs have lengthy had a much-deserved popularity for commanding monumental pay packages, and private equity is the place they earn essentially the most. On a imply foundation, the common Stanford MBA in the category of 2021 earned ‘simply’ $268k final year.
On common, Stanford MBAs have round 5 years’ work expertise once they be part of and the course lasts two years, suggesting they’re sometimes round 29 once they graduate.
Last year, private equity agency Apollo Global Management reportedly started providing its associates packages of $550k. This was in response to a spate of exits following complaints of 20-hour days and a poisonous life-style.
Heidrick & Struggles most up-to-date private equity compensation survey put common pay for associates at as much as $2m on the greatest corporations when carried curiosity is added in.
https://www.efinancialcareers.com/information/2022/01/mba-pay-private-equity
