MBA Salary Components
I have a general question around MBA salaries. I see many colleges boasting about their placements and salaries. The salaries are >30LPA for most tier1 colleges.
Are the figures quoted by B-Schools base salary or Total Compensation inclusive of base, stock and other variable pay?
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Read the IIMA annual placement report. Irs the gold standard in mba salary reporting. Very clearly laid down fixed variable guaranteed cash and other components of salary.
Thanks for the suggestion. The report is a great resource to understand the distribution
Navi on campus this year is paying 53 LPA ctc for PM role. The breakup doesnt mention how much is bonus esop or anything. In absence of any info, the whole 53 is considered and lifts the average.
Deloitte consulting lists its ctc as 27 LPA. Theyve given the breakup and first year max potential is 19 LPA so the 19 gets considered.
The above is how campus placements work. Plenty of companies dont give breakup and hence the inflation. Can say 25-27 LP is a more realistic number.
Startups will come to campus and have a salary structure like this - 15base +14esops+ 6 yearly retention paid over 3 years. CTC on paper - 35l Actual monnies in hand pre tax - 17l
Usually yes the CTC includes all the components of the offer. Joining bonus + Base Salary+ Variable pay + Esops and any other components like retention bonus etc.
Even the Esops components which are traditionally vested for 4 years are taken into consideration for the yearly CTC and calculated into average. International offers are also added into this in most of the cases.
Even after this there is no audit which happens to the placement reports which some colleges inflate as well. So your typical take home should be much much lower compared to what is being quoted in the placement reports.
The latter.
Don't believe the numbers. They're gamed.