New Salary and Employer Sponsorship Data for EMBA Hopefuls
Although the Executive MBA Council has an interest in reporting positive trends in executive education, it's a "top-notch" organization, says Jonathan Lehrich, director of the executive MBA program at Massachusetts Institute of Technology's Sloan School of Management. "All the prestige programs are members," he says. "Recognizing that they have an incentive to put a positive spin on our industry, nonetheless you should treat their data as very reliable."
The rise in EMBA alumni's percentage increase in income from the beginning of the program to the end—from 16.3 percent in 2011 to 17.3 percent in 2012—"probably isn't statistically significant," says Lehrich. "But the difference between either number and what non-EMBA students get certainly is. To get an increase at that kind of level, you have to get promoted. It's not just a standard cost-of-living increase."
The change from the 27.3 percent of employers that fully funded EMBA programs in 2011 to 25.9 percent in 2012 probably also isn't statistically significant, he says, although the decrease is worth noting. "At MIT, we too have seen roughly 25 percent of students getting full sponsorship for the last three years," he says. "However, some students agree with their firms—or even offer—to take partial sponsorship instead of full, so that both parties have skin in the game."
In the current first year Sloan EMBA class, 25 percent of students have full employer sponsorships, while 28 percent have partial employer contributions—sometimes up to 90 percent of tuition, according to Lehrich. "Potential applicants should recognize that sponsorship is an investment, not just a check," he says.
EMBA programs also make an effort to invest in students. This year, Sloan nearly tripled its fellowship awards to "well over $200,000," which went to 13 percent of students, according to Lehrich.
"We want the highest-potential, mid-career executives from all industries and sectors—government and not-for-profit included," he says. "If you're going to apply to an Executive MBA program, you should expect to make a commitment, both of money and of time. It's a commitment that everyone—your family, your organization, and your school—should be proud of."