The class of 2018 at Harvard Business School (HBS) managed to notch up a record $160,268 in total first-year compensation, a 3.6% rise in the previous year’s total of $154,750.
The salary increase was mainly due to a $5,000 jump in median base salaries to $140,000 from $135,000 in 2017 as well as a rise in the number of students who reported getting other guaranteed compensation.
Around 65% of the batch received median sign-on bonuses of $25,000, 14% got a median guaranteed first-year comp of $28,700, as compared to 13% earning $25,000 in the previous year, HBS stated in its 2018 employment report.
The highest salary was for 6% of the class who got roles in hedge funds in investment management. The total median compensation touched $211,050 with median base salaries of $150,000.
The starting salary was $150,000 and signing bonus $25,000 signing bonuses for 94% of these graduates. Eight percent received $28,750 in other guaranteed compensation.
Median sign-on bonuses of $35,000 were received by 33% of the students while a third of the graduates reported other guaranteed first-year compensation of $150,000. The record $211,050 exceeded the previous year’s total of $193,827 by 8.9%.
The consulting sector also recorded salaries well above the class median with the total median compensation at
$175,800. The starting salary was $150,000 and signing bonus $25,000 signing bonuses for 94% of these graduates. Eight percent received $28,750 in other guaranteed compensation.
The median total compensation was the highest in the US at $162,650 compared to $140,099 in Europe and $135,750 in Asia. The median base salary in the U.S. was $142,000, compared to $125,000 in both Europe and Asia.
Finance saw a dip with only 29% of the class choosing it, a fall of two percentage points from the previous year. Consulting, however, had risen by two percentage points, to 25%.
Among the financial service-bound crowd, Harvard said that 15% took jobs at firms specializing in venture capital, private equity and leveraged buyouts, down from 18% a year ago. Investment banking, sales and trading hired 6% of the class, up by one percent from 2017. Investment management firms and hedge funds took 6%, unchanged from last year, while other financial service firms took the remaining 2%, up from 1%.
About 95% of the graduates received job offers within three months of graduation, with 89% acceptance.