Salary for master’s degree in finance is immediate

Stay up to date with free updates

Simply sign in Educational work myFT Digest — delivered directly to your inbox.

Salaries of top master’s graduates in finance programs have grown much faster for those working in financial services than in other fields, a sign of the strength of branch.

The latest Financial Times rankings show that, among those who completed a master’s degree in finance three years ago at one of the 65 schools ranked, the average salary this year is $98,000 for those working in finance – an increase of 12% compared to 2023. third of graduates choosing to work in other sectors, the increase is 3% to 78,000 USD.

The trend represents an increased relative attractiveness – in terms of salary – for graduates working in finance and marks the widest pay gap in at least eight years.

The average salary of female graduates working in finance has increased to $91,000, narrowing the gap slightly with men to 8%, highlighting the still significant gap in Traditionally male-dominated occupations.

Chris Connors of Johnson Associates, a New York-based financial services compensation consulting firm, noted that the spike in earnings was also seen in his company’s data. He said this was due to higher initial salaries amid fierce competition for recruitment, subsequent salary increases linked to high inflation and recent increases in bonuses after two years of stability.

“The region is hiring like crazy and the war for talent is very evident, with much higher turnover,” he said. “Since 2021, base salaries have increased by more than historic levels in the financial services industry.”

During the second year, ESCP maintained its top spot in the FT rankings for “pre-experience” courses – for students with little or no previous professional work – while three other schools based in France were in the top 4: HEC Paris, SkemaAnd Essec. London Business School retains its leading position among the few schools that offer “post-experience” courses for those with industry experience, ahead of other schools. Cambridge University: Judge and University of Amsterdam – Amsterdam Business School.

Among alumni of “pre-experience” courses who went on to work in finance, graduates in trading jobs had the highest average starting salary of $80,000, while those in non-financial sectors earn at least $55,000. Three years after graduation, the highest earners were those in private equity, venture capital and hedge funds, earning an average of $120,000.

Since 2017, almost three-quarters of graduates from these courses have worked in the financial sector and earn more each year than those in non-financial sectors. The salary gap between graduates working in finance and non-finance sectors has increased to $20,000, up from $6,000 in 2017.

The 2024 rankings were compiled using data from business schools and alumni who completed master’s programs in 2021. Participation by institutions is voluntary and the list is weighted. Prices are based on factors including wages, gender balance and value for money.

Ranking data shows that there is still a significant proportion of men, both as students and as teachers. Only three of the 65 schools ranked had gender parity among faculty — IE in Spain and Grenoble Ecological Management And Ieseg At France. The percentage of female employees is as low as 17% Svizzera University Italy in Switzerland.

Among student groups, only Toulouse School of Management and Skema Business School in France has gender parity, with an average of just over a third of classes being female. This was as low as 11% at the time Lucerne Business School in Switzerland.

The strength of rising earnings is one possible reason why demand for a master’s in finance continues to grow, despite a growing stagnation in less specialized business and management degrees, especially in Europe and North America.

The disruption of traditional finance jobs by artificial intelligence – with changes in both basic data entry and more complex analytical work – has also led to a restructuring of employers. useful and capable of changing student interests.

At the same time, some business schools say employers increasingly require so-called “softer” skills, such as teamwork, communication and critical thinking, in addition to quantitative skills. Harder”, including coding and financial analysis.

Students are also interested in better project-based “experiential” learning with companies and are making an effort to learn about newer technologies like cryptocurrency as well as ways to engage with sustainability and social impact.

The FT ratings take into account business schools’ approach to sustainability through their campus commitments to net zero emissions and the publication of carbon footprint audits. This, SDA Bocconi/University Bocconi in Italy performed best, followed by BI Norwegian Business School and IE in Spain.

Across the ranked schools, alumni rated their strongest courses as corporate finance, investments and statistics. Compliance received the lowest rating from graduates.

Courses in North America cost the most per month on average, while those taught in mainland Europe are the cheapest – lower than the fees charged by schools in the UK and Asia.