University of Pennsylvania’s Wharton is ranked number 1 among the American 2-year MBA programs in the Forbes’ 10th biennial ranking of the best business schools.
The ranking lists 70 schools. In the top ten rankings, the second spot goes to Stanford GSB followed at number 3 by Harvard Business School, 4th by Northwestern Kellogg, 5th by Dartmouth Tuck, 6th by Columbia Business School, 7th by Chicago Booth, 8th by MIT Sloan, 9th UC Berkeley Haas and 10th by Cornell Johnson.
Forbes says the ranking is based solely on the median returns on investment achieved by the graduates from the class of 2012. However, the returns for individuals could vary and the results for graduates from business schools outside the top tier are often weak.
The survey for the ranking covered more than 100 schools and 17,500 alumni who were asked about their pre- and post-MBA compensation, career choice and location.
The feedback was received from 25% of those graduates. Those schools from which the response was lesser than 15% of the alumni were excluded from the ranking. Those schools where the alumni had a negative ROI after five years were also not included.
For the ranking, the alumni earnings in their first five years out of business school were compared to the opportunity cost in terms of forgone compensation, tuition and fees.
The total compensation, including salary, bonuses and exercised stock options were measured. It was also assumed that the compensation would have risen half as fast as their post-MBA salary increases had these alumni not attended business school.
Sloan has an annual enrolment of 409 with a median GMAT of 730. The cost is $139,562 and 5-year MBA gain $72,500. UC Berkeley has an annual enrolment of 409 with a median GMAT of 730. The cost is $139,562 and 5-year MBA gain $72,500.
Wharton shows a 5-year gain of $97,100. The school has an annual enrolment of 850 with students having a median GMAT score of 730. The program cost is $148,214. The 2nd ranked Stanford has an annual enrolment of 417. The median GMAT is 740. The program cost is $135,534 and 5-year MBA gain $92,500.
Harvard has an annual enrolment of 934. The median GMAT is 730. While the cost is $60,435, 5-year MBA gain is $95,000. HEC Paris has an annual enrolment of 232. The median GMAT is 690 and program cost $154,125. The 5-year MBA gain is $89,600.
Kellogg has an annual enrolment of 474 and a median GMAT of 668. The cost is $138,227 and 5-year MBA gain $84,800. Tuck has an annual enrolment of 285 students with a median GMAT score of 720. The cost is $145,050 and 5-year MBA gain $81,200.
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Columbia has an annual enrolment of 776 with median GMAT at 720. The cost is $147,805 and 5-year MBA gain $75,900. Booth has an annual enrolment of 586 with a median GMAT of 730. The cost is $139,323 and 5-year MBA gain $74,800.
Sloan has an annual enrolment of 409 with a median GMAT of 730. The cost is $139,562 and 5-year MBA gain $72,500. UC Berkeley has an annual enrolment of 409 with a median GMAT of 730. The cost is $139,562 and 5-year MBA gain $72,500.
Cornell Johnson has an annual enrolment of 279 with a median GMAT of 700. The cost is $130,778 and 5-year MBA gain $70,400.
