MBA degree is optional for top jobs
Business week published a piece demonstrated that for TOP management level jobs (CxO level), the MBA degree is not a requirement. Case in point:
1) two researches show in 2000-04, companies run by CEOs with MBAs have modestly better, sometime same, return on equity than those run by non-MBAs. But median shareholder return for the MBA-run companies was significantly worse -- 7.4%, versus 9.9% for companies run by non-MBAs.
2) research has found that fewer than 1/3 executives who reach those lofty heights do so with the help of an MBA. American Express , Citigroup , FedEx Corp, IBM ,Microsoft Corp and Wal-Mart Stores Inc all have CEOs without MBAs.
Headhunters say that while an MBA may help land a first job after graduation, the career benefits from that moment on are almost nonexistent. It's the instinct, the hard work, and the raw intelligence get people to the top.
However, for non-top management positions, MBA do get degree-holder paid better, the more prominent the school, the higher the salaries. This can be explained by the B-schools' carefully crafted brands, or the signal theory.
1) two researches show in 2000-04, companies run by CEOs with MBAs have modestly better, sometime same, return on equity than those run by non-MBAs. But median shareholder return for the MBA-run companies was significantly worse -- 7.4%, versus 9.9% for companies run by non-MBAs.
2) research has found that fewer than 1/3 executives who reach those lofty heights do so with the help of an MBA. American Express , Citigroup , FedEx Corp, IBM ,Microsoft Corp and Wal-Mart Stores Inc all have CEOs without MBAs.
Headhunters say that while an MBA may help land a first job after graduation, the career benefits from that moment on are almost nonexistent. It's the instinct, the hard work, and the raw intelligence get people to the top.
However, for non-top management positions, MBA do get degree-holder paid better, the more prominent the school, the higher the salaries. This can be explained by the B-schools' carefully crafted brands, or the signal theory.
posted by Job Pundit at 4/01/2006
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