Tuck Sets New Records On Pay, Tech & Healthcare Hires - Poets&Quants

MBA graduate from Dartmouth’s Tuck School of Business

Even though record numbers of this year’s MBAs from the Tuck School of Business accepted jobs in technology and health care, the school’s Class of 2018 reached a new high in starting pay.

Total median starting compensation rose by 3.8% to $151,750 this year, up from $146,250 in 2017. The total number includes median base salary of $130,000, up $5K from $125,000 last year, and median signing bonuses of $25,000, adjusted for the percentage of students who received those incentives, Some 87% of the graduates reported receiving a sign-on bonus, versus 85% last year.

The totals were a tad higher on an average basis. The average starting compensation was $157,989, an increase of 2.8% from $153,663 a year earlier. The base was $130,020, vs. $127,986 last year, while the average sign-on was $33,148, up from $30,208 last year.

Unlike Harvard Business School and Columbia Business School, Tuck did not report other guaranteed compensation for the fourth year in a row. The last time Tuck provided that data point was 2014 when 38% of the class reported median other guaranteed comp of $25,000, with one Tuckie in private equity getting a hefty $148,506 in other guaranteed pay. Tuck’s $151,750 median total this year compares with Columbia’s $155,248 and Harvard Business School’s $160,268, both of which include other guaranteed comp (see Harvard MBAs Now Landing Starting Pay Over $160K).

TECH AND HEALTHCARE HIRES SET NEW RECORDS AT TUCK

The increases in Tuck MBA pay, while in line with what peer schools are reporting, have come despite rising numbers of Tuck grads who are going into tech and healthcare rather than consulting or finance which tend to dangle more lucrative starting offers to MBA graduates. The median starting base in tech, for example, are $17K under the consulting median of $147,000, while median salaries of $120,000 in health care are $27,000 below consulting (see salary by industry on following page).

A record 24% of the MBAs took jobs with tech firms, up four full percentage points from last year’s all-time high of 20%. A record 8% of Tuckies poured into health care, pharma and biotech companies, double the percentage just two years earlier and three percentage points over 5% last year.

“It’s really inspiring to see the diversity of career paths that our graduates embark upon. Our alumni routinely cite Tuck as the most transformative two years of their lives, and it is a privilege to support and work with students during this time as they explore their options, and pursue their career goals,” says Stephen Pidgeon, executive director of career development, in a statement.

LITTLE DIFFERENCE BETWEEN U.S. AND INTERNATIONALS ON PLACEMENT DATA

For the first time ever, moreover, the tech industry hired more Tuck graduates than financial services which employed 20% of the class. Only five years ago, in 2013, financial services hired the most Tuckies, then employing 30% of the school’s MBA graduates (see chart below). Back then, the tech industry accounted for just 13% of the placements, while consulting hired 27% of the class.

In publishing 2018 employment data, Tuck also noted that 96% of the class reported job offers within three months of graduation, up from 95% last year, while 93% accepted their offers, also up a percent over a year earlier.

There was little difference in the employment stats for interational students who have been trailing their domestic classmates in job offers at other peer schools. Tuck said 94% of non-U.S. graduates had offers three months after commencement, compared to 97% of U.S. citizens. Some 90% of the school’s international MBAs accepted their offers in that same timeframe versus 93% for U.S. grads.

Dartmouth Tuck employment reports through the years

ONLY 6% OF THE CLASS WENT INTO CONSUMER GOODS THIS YEAR

Among the financial service hires this year, investment banking attracted the most Tuckies, with 11% going into i-banking, up from 10% last year. Some 4% of the grads went into investment management, while 2% landed jobs in private equity and venture capital. The highest reported starting salary–$215,000–went to a Tuck MBA who joined a PE firm.

The increase in tech and healthcare this year had a greater impact on other industry hires. Only 6% of the class went to work in consumer goods, versus 11% in 2017. Some 5% of the class took jobs in manufacturing, while 3% accepted positions in transportation.

DON’T MISS: AT COLUMBIA, CONSULTING OVERTAKES FINANCE AS THE INDUSTRY OF CHOICE or AT KELLOGG, TECH BECOMES NEARLY AS POPULAR AS CONSULTING

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