IMD has regained the number 1 slot in the Forbes Best 1-Year International MBA Programs 2017 pushing INSEAD to the second spot in the biennial business school rankings.
Graduates of IMD, based in Lausanne, Switzerland, notched up a five-year salary gain of $194,700, Forbes said. The business magazine had surveyed 17,500 MBA graduates around the world this year from the class of 2012 to gauge the return on investment they got by attending business school.
It said the top 10 one-year international programs produced an average 5-year gain of $126,000.
Comparatively, the leading 2-year programs outside the U.S. had a gain of $74,300. The best U.S. MBA programs had a five-year gain of $73,400. Wharton was ranked first at $97,100.
Despite the expenses, the class of 2012 managed to draw a median salary of $215,000, about $26,000 more than any other non-U.S. school. IMD graduates earned back their investment (forgone salary, tuition) in just 2.3 years on average.
The 1-year programs have a faster return on investment due to the shorter time spent by the participants outside the workforce.
IMD has the advantage of having a small class with just 90 students, an advantage during recruitment. The school has as many as 70 firms looking to recruit MBA graduates.
The average work experience for the cohort is seven years that translates to higher forgone salaries ($81,000 for the Class of 2012). IMD also has the most expensive one-year program ($88,000 for the current class). Apart from the tuition fee, it covers two trips abroad, daily lunch on campus, teaching materials and other such facilities.
Despite the expenses, the class of 2012 managed to draw a median salary of $215,000, about $26,000 more than any other non-U.S. school. IMD graduates earned back their investment (forgone salary, tuition) in just 2.3 years on average.
INSEAD ranks second among one-year programs with a five-year gain of $150,400. The payback period is a brisk 2.7 years thanks to salaries five years of school of nearly $190,000.
The school also has the biggest MBA program in the world with 1,055 in the class of 2017. Last year, 125 students accepted roles in McKinsey, Boston Consulting Group (67), Bain (48) and Amazon.com (35). Forty-eight percent of graduates went into consulting.
IE Business School in Madrid displaced Cambridge Judge Business School to occupy the third rank with a 5-year gain of $145,400 with a pre-MBA salary of $63,000. IE also has the highest percentage of graduates at 37% in marketing and sales jobs. With an annual enrolment of 547 students, IE is the second-biggest international MBA program behind INSEAD.
Cambridge Judge is in the fourth place with a gain of $140,000 and pre-MBA salary of $63,000. SDA Bocconi School of Management with a gain of $138,100 is ranked 5 with a pre-MBA salary of $48,000.
Oxford Said Business School is in the 6th rank with a gain of $121,400 and pre-MBA salary of $78,000. The University of Hong Kong is in the 7th spot with a gain of $105, 700 and pre-MBA salary of $65,000.
Mannheim is in the 8th rank with a gain of $91,800 and pre-MBA salary of $44,000. RSM Erasmus is in the 9th rank with a gain of $89,000 and pre-MBA salary of $56,000.
Cranfield School of Management is ranked 10th with a gain of $83,300 and pre-MBA salary of $43,000.
Forbes said the ranking was solely based solely on the return on investment achieved by the class of 2012. The graduates’ earnings in their first five years out of business school was compared to their opportunity cost (one year of forgone compensation, tuition and required fees) to arrive at a five-year MBA gain.
Schools whose alumni had response rates below 15% or a negative return on investment after five years were eliminated.