Older alumni using Executive MBAs as start-up springboards, FT ranking shows
The following contribution is from Andrew Jack, who is the Financial Times’ global education editor, writes on education issues around the world and is the editorial director of the FT’s free schools programme. He was previously head of curated content, deputy editor of the essential reading section, pharmaceuticals correspondent and foreign correspondent in France and Russia.
He oversees the free FT Schools Digest (sign up here) and Business School Insider newsletters. He is the author of Inside Putin’s Russia and The French Exception.
Traditionally used to climb the corporate ladder, the EMBA is increasingly a route into entrepreneurship
According to data from the FT EMBA 2024 rankings, the number of Executive MBA graduates starting their own companies is rising sharply among those aged 40 and over.
While 29 per cent of alumni aged 30 or under created one or more start-ups within three years of completing their degree, this percentage rose to a third among those aged 40 and over and more than two-fifths among those aged 54 and over.
The data corresponds to graduates who completed their EMBA in 2021 at business schools that participated in the assessment for the 2024 ranking, which was led by China Europe International Business School (Ceibs), in Shanghai.
The FT data supports broader statistics on the importance of more mature founders, who often have more contacts, access to capital and experience – and may also have lost out in their efforts to reach the top at their current employers.
Increase in alumni setting up their own companies
Overall, the share of alumni from all participating schools setting up their own companies has risen from 25 per cent in 2016 to 29 per cent this year, just shy of a peak of 30 per cent in 2023.
Average age of alumni entrepreneurs up
The average age of alumni setting up startups since completing their EMBA has also risen to a peak of just over 43, up from 41 in 2016.
Ceibs, founded through a partnership between the EU and the Chinese government in 1994, is at the top of the FT rankings for the first time, after its second place finish for the past four years. It is also the first time that a school from the Asia-Pacific region has topped the table with a solo EMBA, not conducted in partnership with an institution elsewhere.
The Shanghai school’s top position defies China’s recent economic slowdown, travel and operational restrictions during the Covid-19 pandemic, and rising geopolitical tensions with Europe and the US. This was partly offset by bringing international students to Ceibs’ subsidiary campuses in Switzerland and Ghana.
Ceibs’ rise reflects, in part, high average alumni salaries of nearly $537,000, after adjusting for purchasing power parity using IMF rates. The top five salaries were recorded by China-based courses, all but one in joint EMBA programs with a US partner.
Earnings three years after completing the course have fallen significantly
The FT ranking is based on criteria including average alumni salaries, publication of faculty research in selected journals, and the gender and citizenship diversity of students and faculty.
Salary decline in real terms
While the age of EMBA students has remained roughly constant in recent years, their earnings three years after completing the course, when surveyed by the FT, have fallen significantly in real terms. Average salaries for those aged over 40 fell from a recent peak of $240,000 annually in 2018 to $210,000 this year, after adjusting for inflation, with a similar decline for younger alumni.
Those in healthcare earned the most salaries, ahead of alumni working in financial services, insurance and banking
Who together rank second by sector, followed by those in technology, telecommunications and IT in third place.
Interest in the EMBA, which is typically taken alongside their job by mid- and senior-level managers with more than a decade of work experience, appears relatively strong, though it stagnates among the typically younger cohort seeking full-time MBAs.
There are regions where demand remains strong
Michael Desiderio, director of the Executive MBA Council (EMBAC), a professional association of business schools that offer EMBAs, says demand remains strong among his members. There have been small increases in the number of institutions joining, in new programmes launched and in the average cohort size, which has risen slightly to over 57.
A survey of EMBAC members showed that average tuition costs had risen from $94,000 last year to $95,000 in 2024, while almost 55 per cent of students at its schools said employers now made no contribution to costs, 27 per cent said they received partial reimbursement and 18 per cent had all their costs covered by their employer.
Gender parity in faculty
Among the 100 leading global business schools ranked by the FT, only two (Iscte Business School, with campuses in Portugal, Spain and the UK, and Grenoble Ecole de Management in France and Georgia) had an equal proportion of female and male faculty, giving it the highest score.
Fordham University’s Gabelli School of Business reported gender parity among students, while only 13 of the 100 schools overall had more women than men studying.
The Wharton School at the University of Pennsylvania ranked first for academic research, based on recent articles published in top peer-reviewed journals, followed by Chicago’s Booth School of Business.
IE Business School ranked first for its integration of environmental, social and governance issues into core courses, and Milan’s SDA Bocconi School of Management ranked first for the most ambitious goal of reducing carbon emissions on its campus.
The Yale School of Management ranked first for goals achieved by its alumni, and the joint EMBA offered by BI Norwegian Business School and China’s Fudan University School of Management topped the assessment of the value of alumni networks.
The MBA Program May Be Right for You
The following contribution is from Rich Griset who is a Fortune Recommends freelance contributor with extensive experience in business, transportation, real estate, housing, education, and retail. Based in Richmond, Virginia, Rich’s articles have appeared in The New York Times, The Washington Post, Los Angeles Times, Fortune, New York Daily News, and Love + Radio. He previously served as deputy editor at Virginia Business Magazine and has been a theater critic for Style Weekly, Richmond’s alternative weekly publication, since 2009. Rich holds a Bachelor of Science in Mass Communication from Virginia Commonwealth University.
If you feel stuck on the corporate ladder, or just want a leg up on the next rung, you may be considering an executive MBA program. In addition to boosting your career, this degree variant can lead to a double-digit increase in income and expand your network.
However, EMBA programs are also expensive and time-consuming.
Taking Your Career to the Next Level
UNC Kenan-Flagler’s top-ranked online MBA is designed for experienced professionals looking to take their career to the next level.
Students have access to lifetime career benefits and a global network of more than 51,000 business school alumni. Earn your MBA online in as little as 18 months or up to three years. MBA scholarships available.
The top 10 schools on Fortune’s ranking of the best EMBA programs have an average cost of more than $197,000. And that doesn’t include the intangible cost of your time—these programs typically last two years and require some in-person, on-campus sessions.
Since most EMBA students are a decade away from earning their undergraduate degrees, they also have to juggle a busy career and personal life while attending school.
If the obstacles listed above don’t deter you, an EMBA program may be a good fit for you. This route to a business degree is different than other programs, but it may be a good fit for specific types of applicants.
“The one thing that remains constant is that these are highly motivated people,” says Michael Desiderio, executive director of the Executive MBA Council (EMBAC), an academic association that represents the industry. “It’s not always about the person who’s looking to make the most money. Increasingly these days, it’s about people who are looking to make an impact.”
Is an EMBA program right for you? And how can you get your employer to help you defray the cost? Here’s what you need to know
The Executive MBA: A Degree for the Working Professional
Compared to a traditional MBA program, an EMBA is designed for students who are further along in their careers and want to attend school while continuing to work full-time. EMBA programs offer varying part-time schedules, and classes are typically held on Friday and Saturday evenings. Like a full-time MBA program, EMBA programs typically take two years to complete.
EMBA programs have become increasingly popular
With enrollment growing 68% over the past decade, according to figures from Caryn L. Beck-Dudley, president and CEO of AACSB International, a nonprofit association and accreditor of business schools.
“Mostly, that’s coming from executives who really want to improve their skills in business disciplines [and who] didn’t pursue a business degree,” she adds.
Who are EMBA programs aimed at?
EMBA students are typically older and have more work experience compared to candidates for full-time programs. While an EMBA student is typically 12 to 20 years into their degree, most full-time MBA students have only been in the workforce for three to seven years.
Age makes applicants good candidates for an EMBA program compared to other types of MBA programs, Beck-Dudley says. Often, EMBA students have been successful in their careers but have hit a limit in their advancement. Earning an EMBA is a way to move into a more managerial role.
“It’s really for an experienced professional who wants to expand their skill set,” Beck-Dudley says.
An EMBA allows students to gain leadership skills and better understand the financial results of their jobs. Pursuing an EMBA can help candidates move up in their current companies, change direction within their career fields, or help them change careers altogether.
The Industries That Receive the Most Applicants for EMBAs
While professionals from all disciplines seek EMBA degrees, Desiderio says that the healthcare, pharmaceutical, biotechnology, technology, financial services, and manufacturing industries receive the most applicants to EMBA programs. Typically, EMBA applicants already have experience in management, budget oversight, and other employees.
So what’s the benefit of pursuing an EMBA instead of just working at your current job?
In addition to providing a core curriculum that includes finance, marketing, accounting and operations, Desiderio says EMBA programs teach soft skills and help give students an outside perspective on business.
“It’s hard to do that when you’re immersed in your role at your job,” Desiderio says. “You’re inside your bubble, and your EMBA takes you outside of it.”
The Competitive Advantages an EMBA Gives
The ever-advancing digital age means job seekers are increasingly faced with a job pool that could include people from all over the country and the world, and an EMBA can also give candidates a competitive edge.
“The market is changing too quickly for any of us to stand still, and lifelong learning is critical to professional development,” Beck-Dudley says. “Employees who commit to updating and expanding their skills will have the greatest impact on their careers.”
What should you look for in an EMBA program?
While you may be a good candidate for an EMBA program, you also need to find a program that is a good fit for you. First and foremost, Beck-Dudley says, EMBA applicants should research the quality of the teaching staff at the programs they are considering.
Other concerns include the alumni network and the program’s curriculum
Regarding the latter, be sure not to duplicate a knowledge base you already have. Convenience is also a consideration, as both the commute and class time will impact your personal life.
Still, there is an advantage to being in the trenches for two years with the same cohort of students.
“Because it is so intense, and most [EMBA programs] are cohort-driven, [students] become best friends for life,” Beck-Dudley says, adding that in Silicon Valley, EMBA graduates who are starting companies often reach out to former classmates.
Cost and Return
Globally, Desiderio says EMBA programs cost $87,000 on average. Highly sought-after EMBA programs, such as those at Columbia and Wharton, hover around $200,000.
These high costs can pay off.
“It’s a big financial investment,” Beck-Dudley says. “But you also have to spread the cost out over your next five, 10, 15 years of your professional environment. If you’ve reached the limit of your discipline or your current position, you’re not going to get the salary increases you want.
Most people who do an EMBA see a pretty substantial increase in their salary over the next five years after they’ve completed it.”
Still, Desiderio cautions that an EMBA alone is no guarantee of success.
“It’s typically a double-digit salary increase, but what I always warn people about is that this is average. The fact that you get the degree is no guarantee of any change for you,” she says. “You have to be willing to do something with it.”
How can I get my employer to pay for my EMBA?
When the University of Chicago (Booth) launched the world’s first EMBA program in 1943, 100% of its students had their education paid for by their employer. “There was a period in our industry where if you didn’t have full support from your employer, you couldn’t even attend an executive MBA program,” Desiderio notes.
Times have changed, and over the past 15 years, Desiderio has witnessed a downward trend in employers paying full tuition for students. Today, Desiderio says employees seeking to have their employer pay for part or all of their EMBA degree should have a frank conversation with management.
While Desiderio says he has heard of companies in the past requiring employees to sign contracts in which they would stay with the company for a certain number of years in exchange for financial support (or risk having to pay the company back), he says that seems less common today.
In general, Desiderio says people should understand that these programs are major commitments
“These are not for the faint of heart,” he says. “Know that when you do it, it’s a lot of work. It’s rigorous.”
Is an MBA necessary to become an entrepreneur?
Entrepreneur studying MBA
The following contribution is from the portal of Torrens University of Australia, which is Australia’s registered international university and vocational training organisation, “built on the shoulders of giants. We have partnered with prestigious schools and colleges to develop a new, modern and global perspective for higher education.”
Is an MBA useful for entrepreneurs? It is difficult to generalise, of course, but many people prefer to
