University of Iowa News Release
Sept. 29, 2003
Forbes Ranks UI MBA Program 24th In Return On Investment
Forbes magazine has ranked the Tippie School of Management at the University of Iowa 24th in the U.S., based on return on investment to MBA students. The Tippie School ranked 8th among public universities in the survey.
The Forbes rankings measures how quickly MBA students recoup the investment made in their MBA education after they graduate, and are based on salary gains of 1998 MBA graduates over the past five years. Tippie MBAs graduating in 1998 earned a median salary of $93,000, up from a $32,000 pre-MBA salary, according to the survey.
"I'm particularly pleased at our success in the Forbes ranking because it measures what is fundamentally important to an MBA student -- the return on investment of an MBA education," said Gary Gaeth, associate dean of MBA programs in the Tippie School of Management. "I'm particularly proud that Iowa's MBA program is ranked third in the Big Ten behind two great schools, Northwestern and Michigan."
For this year's survey, Forbes sent out 18,000 questionnaires to full-time graduates of MBA programs at 67 U.S. business schools and 18 international business schools. To determine the five-year MBA gain, Forbes asked for pre-MBA salaries as well as for compensation in three of the first five years out of school. The survey then compared the compensation after school with both the costs of attending (in tuition and foregone salary) and estimates of what the same students would have made in their old jobs.
The survey showed that Tippie graduates had total salary gains of $61,000 over the five-year period, and needed only 2 1/2 years to break even on their MBA investment. The Tippie MBA program was tied for fifth in this category.
Forbes also looked at graduates' return on investment as a percentage of their expenses, adding tuition cost and lost compensation during their time in an MBA program and comparing it to their salary after earning an MBA. In this comparison, Tippie MBA graduates earned 118 percent on their degree, placing the UI fourth in this category among U.S. universities.
The Tippie School of Management offers three MBA programs designed to enhance professional education: a Full-time MBA; the Evening MBA for part-time students in Des Moines, Newton, Cedar Rapids and the Quad Cities; and the Executive MBA, with programs in Iowa City and Des Moines. The Tippie School offers a Dual Master's Degree Program for engineers, in conjunction with Iowa State University and an International Executive MBA program in Hong Kong. The Tippie College of Business, accredited by the Association to Advance Collegiate Schools of Business (AACSB), is consistently ranked among the top business schools in the world. It provides instruction in a personalized setting with easy access to qualified faculty and staff, and its programs utilize the latest technology to ensure that students receive a comprehensive management education that will help them succeed in today's competitive world.
STORY SOURCE: University News Service, 300 Plaza Centre One, Iowa City, Iowa 52242-2500
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