PhD Programs in Organizational Leadership Prepare Business Professionals for Managing Change

It still pays to work on Wall Street, at least that's what the latest salary figures reported by the Wall Street Journal suggest. Overall compensation on Wall Street is expected to increase an average of 20 percent. That's good news for recent business school graduates.

It still pays to work on Wall Street, at least that’s what the latest salary figures reported by the Wall Street Journal suggest. Overall compensation on Wall Street is expected to increase an average of 20 percent. That’s good news for recent business school graduates.

What can those with MBA degrees expect to make on Wall Street? Investment bankers at the managing director level can expect to receive compensation packages worth $2.2 to 3.3 million in 2005. Of course such hefty salaries are reserved for those with several years of banking experience.

Recent business school graduates fair well on Wall Street too. A first-year associate can expect to earn between $105,000 to 125,000. One with a few years of experience might earn around $170,000 to 215,000 as a municipal derivatives trader.

Brokerage firms that are enjoying the most growth and biggest payouts are Goldman Sachs Group, Lehman Brothers Holdings, and Morgan Stanley, reports the Journal. Most of the growth is attributed to mergers and acquisitions activities and oil revenues.

MBA Programs: A Ticket to Wall Street

Many Wall Street brokers get the credentials they need to work on Wall Street at business school. Some MBA programs may offer specializations in investment banking or finance, both of which are relevant foundations for those seeking a career as a trader or broker. Graduate business school programs typically last two years; all require at least a bachelor’s degree for admission.

Such large salaries do come at a price, however. Wall Street brokers generally work very long hours. Their work can also be stressful, especially if they are shepherding a multi-million, or billion, dollar deal.

If those sacrifices sound too great, then you should consider other options. You can still use your MBA in the pursuit of a financial career. Brokers and financial managers work with a variety of financial companies assessing the value of stocks, analyzing industries for good investment opportunities as well as a variety of other positions. They might also work independently as a private financial advisor or as a consultant, giving advice to small and mid-sized firms on how to invest profits and endowments.

Source:

The Wall Street Journal

Posted on June 02, 2006 at 05:44 PM

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