CEOs Don't Need an MBA to Get Rich

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December 8, 2010
MBA Express

NEWS  THIS WEEK'S TOP STORY EXECUTIVE EXCESS CEOs Don't Need an MBA to Get Rich New research shows that fewer than half of the highest-paid CEOs at big companies have MBA degrees   MORE TOP STORIES GETTING IN B-School Admission Essays, For a Fee Perfect Words and Essaywriter say they can deliver admission essays that will open the doors of elite business schools. Is it ethical? MBA JOURNAL: B-SCHOOL UPDATE Long Hours at London Business School "Life at LBS is a lesson in opportunity costs. There simply aren't enough hours in the day to attend and achieve everything you'd like" More B-Schools Accepting GRE It's been well over a year since many top business schools started allowing applicants to submit the Graduate Record Examination (GRE) for admissions BEST BUSINESS SCHOOLS 2010 Business School, Explained Is business school on your horizion? If so, get answers to all your questions on admissions, careers, and B-school life from the experts  B-SCHOOL FORUMS Visit BW Online's interactive forums for wide-ranging discussions about management education. Search through over 1,359,000 posts for topics that interest you. Join in today! Here are a few samples of recent messages: Getting into B-School —Let Them Know The Competition? From: k2718 To: All I have received a full tuition scholarship from school A. (School A is ranked between 15 and 20 but am not *super* excited about going there). I am very flattered and may take the offer, but really would prefer school B. I haven't heard back school B but feel that I am a very solid candidate. So my question is this, loyal message board posters, would I maximize my chances of admission to school B by letting them know that I had received that offer or not? From: JinShil2 To: k2718 I don't think it could hurt. But every ADCOM office makes its judgement based on what it thinks of you, and every top 15 school has far more qualified applicants than it can admit. At the end of the day, if a school thinks another applicant is better, then it will have no problem making that decision regardless of whether an another school thinks you can walk on water. It may help to send a courteous and SHORT email on your fellowship to School B but do NOT make it sound like a big deal. From: BosMBAasap To: k2718 First of all you don't need to be so cloak and dagger, school admissions officers don't waste their time trolling these trying to guess which applicants have commented what. They're busy enough. Now to your question: I think at first logic suggests they would view you more favorably (just like when you may have negotiated a salary in the past) but quite possibly maybe not. Schools care a lot about their yield and if in fact you got a generous scholarship to attend another school, might they think it is that much less likely you'll attend School B without scholarship money? I doubt seriously that any school would change your admissions status based on you getting money elsewhere, and would expect you'd stick out in a bad way more than a good way. How does this change anything about your candidacy? JinShil2 and many others routinely point out that frequently people are rejected by lesser ranked schools and accepted at more selective ones. This process is really a luck game and don't trade on your acceptance at one carrying value at others. From: ApplyintheSky To: k2718 I would say it's not going to hurt you to let them know. At worst it simply won't make a difference. I would however caution you against going somewhere just because you feel "flattered" that they would give you a full scholarship. I'm not saying the money is not important -- of course it is! Business school is so expensive. But if this School B that you like better accepts you without offering you a scholarship, make sure you don't get too tempted by the money to make the right decision for yourself longer term. From: JinShil2 To: BosMBAasap I would like to qualify your statements about luck. Yes, luck plays a role, but only within reason. For the most part, top B-School applicants are very smart people. Mostly B-Schools find about 70% of their applicants as "qualified". Given the high standards of top B-Schools (top GMAT, WE, GPA etc), that should tell you what one is up against. It isn't unusual, for example, for B-school to choose only one of 680+3.8, 710+3.3, or 750+3.1. Every ADCOM at top schools will openly admit they deny admissions to really good applicants every year. Getting into B-School — Courses Before Business School From: MG2013 To: All I am from a completely non business non quant (though I live math) background and plan to take some courses next spring before I start B school. Have any of you or are any of you planning to take any courses to prep for business school, if yes which ones? From: anak84 To: MG2013 I'm coming from a similar non business/non quant background (I worked as an actor and model and now as a filmmaker) and due to my fear, I have asked everyone (including both admissions reps and teachers at Stanford, Harvard, Wharton, and Tuck) this question you ask. As far as admittance is concerned only Wharton expressed concern and advised I take a Statistics class and perhaps a Microeconomics class. So I am taking both in the spring semester. They interestingly said it didn't matter where I took these courses as long as I took them. As far as how you would do in B-school, you should know charts, excel (how to make and navigate spreadsheets in general), prob+statistics and at the least a general knowledge of microeconomics. Still, schools differ in how they instruct. I am hell bent on going to Wharton or Stanford or Haas. Wharton will be a greater first year challenge since they are quant heavy and start the program with a sprint whereas Stanford and Harvard are not quant heavy and Stanford eases you in to their curriculum. Wharton also often conditionally accepts a student requiring them to take certain courses before granting them full admittance. From: MG2013 To: anak84 Thanks for responding anak. Are you taking these courses online? From: JinShil2 To: MG2013 Statistics and calculus (101 level) are essential. Stats is far more important than calc. Otherwise, look at the "core" curriculum or, if your target school has none, then look at the recommended track for B-school students and see which one you would need to be most prepared. Although I am very familiar with stats, I was blown away by the level of math knowledge of some of my peers at a top 7 B-School. If you aren't familiar with even basic stats, you will be at a disadvantage. A good knowledge of stats is required at many other courses such as marketing and finance. For non-business or quant types, the following courses tend to be the hardest: 1)stats 2)finance 3)accounting Good luck. From: LINDAABRAHAM To: MG2013 You might want to check out MBA Math at www.mbamath.com. Best, Linda From: ApplyintheSky To: All One thing to add... Not being a "quant" doesn't necessarily put you at a disadvantage, since adcom's are looking for a broad range of backgrounds. You just need to demonstrate that an MBA is right for you and that you have the potential to be a successful business professional once you're done with the program. In my current MBA program I have friends who come from all sorts of backgrounds, including medical doctors and LA talent agents. These people have never looked at a balance sheet and don't know how to use excel and they're doing fine. They did all, however, take pre-MBA courses offered during orientation by the school and they said that they were extremely useful. I have no doubt that the schools you are looking into also offer something similar. One resource I would point you to are the Vault guides (you can find them on Vault.com). No, I absolutely don't work for them, but back in undergrad they helped me teach myself enough finance and accounting to land a top tier investment banking job despite having absolutely no understanding of the subjects before then. They're just little booklets -- not super expensive -- and they make the material very accessible and clear. Hope this helps! Getting into B-School — Unfair Advantage for Women? From: ApplyintheSky To: All We recently did some research into whether women have an advantage over men when it comes to getting into business schools. And while schools don't disclose actual acceptance rates for particular demographics, we did discover that the percentage of MBA applicants that is female, is roughly the same as the percentage of enrolled MBA students that is female. Specifically, they're both around 29%-30% with a standard deviation of 5%. That would indicate at least on the surface that there is no bias. More commentary here. Of course, we realize it's not a scientific study and the data is inconclusive. Any thoughts from people's personal experiences or consultants who might have an insider's view into the process? From: music_arts To: ApplyintheSky Well in my part of the world less number of women study engineering, accountancy, finance, economics or business administration at undergrad level. Though I dont have data, but I am pretty sure that same is the case almost everywhere across the world. So a fewer number of women tend to apply for bschools which implies that women group is less competitive and if adcom has to choose between 2 equally competitive candidates but one male, another female..I feel adcom will select female candidate (no data again or insider info just the gut feel :)) From: mangg To: ApplyintheSky well duh. It's like saying mexicans have an advantage over asians or whites. It's the PC, meaningless quasi diversity that all organizations need to achieve. From: ApplyintheSky To: All I wouldn't say that just because less women apply to business school it's necessarily less competitive. As long as the same percentage is accepted among women as among men, then the system is fair (assuming the two groups are equally as qualified). The data definitely doesn't negate this possibility, since the percentage of enrolled students who are female is the same, not higher, than the percentage of applicants who are female. One could also argue that the since there is a degree of self-selection going on (most women don't apply to MBA programs at all), then only the truly qualified apply, making the female demographic relatively more qualified. Of course, without real data that's just speculation. This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. 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B-School Insider Dear Reader: One of the cardinal sins of the academy is intellectual dishonesty. So it came as a surprise and a disappointment to learn that some MBA applicants may have gained entrance to elite programs using ghost-written application essays. Two professional essay writers told Francesca Di Meglio that they've gone well beyond suggestions and editing, and have written entire essays that applicants may have turned in as their own. Did they? It's hard to tell, since it would take a brave applicant to stand up and say "I lied." But if they did turn in professionally written essays, it would be just the latest in a series of black eyes for MBAs over the years, from the 2007 Duke cheating scandal to various GMAT cheating episodes. If anyone wants to know why MBAs have a tarnished reputation among the public at large, this would be a good place to start. And pay might be another. Discussions of MBA pay are usually focused on salaries at graduation. And for two years now, the question on most lips wasn't "How much?" but "How little?" (or for those without jobs, "Pay? What Pay?) So it's worth noting that things, eventually, get better, and for a select few, much, much, much better. As Francesca Di Meglio reports, this year, a number of big-company CEOs with MBAs—from elite, and not so elite, programs—really made out like bandits: average total compensation for the 25 highest paid was nearly $23 million. So buck up, Class of 2012. Striking it rich is not an impossible dream. Louis Lavelle Business Schools Editor Bloomberg Businessweek E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS B-SCHOOLS NEW ON MBA INSIDER >> UCLA Anderson: Admissions Q&A MBA Admissions Director Mae Jennifer Shores explains what UCLA's Anderson school has to offer and what it takes to get in MBA Insider Subscribers Only Advertisement B-SCHOOLS MULTIMEDIA MBA >> IMD The Current Financial Crisis and Beyond A Top Management Survey by Professor Bala Chakravarthy What’s Your Problem? Trouble at the office? In surveys, blogs, polls, and social media, BusinessWeek collaborated with readers to identify problems at work. Together we found answers.  IN YOUR FACE: THE FASTER, CHEAPER MBA Reader Dorothy Beach Writes: " People are losing patience with an MBA system that is too linear, not relevant so get it done as quickly as possible to get on with what is real. " Tell Us: Leery of Year-Long MBA Programs?     Tools & Features MBA Insider Check out this feature-rich area for advice and tools that will help you choose the right B-school -- and develop a strategy for getting accepted Full-Time MBA Rankings & Profiles BusinessWeek's Top 30 U.S. programs and Top 10 international programs. Plus, scan in-depth profiles of more than 300 full-time programs around the world The Best Undergraduate B-Schools Undergrad business programs are getting MBA-like respect, and competition to get into them is hotter than ever. Here's how the top schools stack up B-School Calendar BusinessWeek.com's scheduling tool will give you an idea of upcoming events at B-schools in the U.S. and around the world. You'll find information on admissions receptions, application deadlines, networking events, alumni events, conferences, and much more. EMBA Rankings & Profiles BusinessWeek's biennial Executive MBA rankings grade 25 programs worldwide. Plus, you'll find profiles of nearly 200 programs Exec Ed Rankings & Profiles Here are BusinessWeek's top 20 Executive Education programs. Plus, profiles of more than 100 programs worldwide Advertisement   FEATURED SPECIAL REPORT >> Perfecting Your Business School Application Slide Shows Slide Show: Best U.S. Business Schools Video Video: How to Choose Recommendation Writers GMAT Test Prep: A User's Guide Not all GMAT test-preparation services are created equal. Use this guide to find out which one is right for you How to Write an MBA Admissions Essay Be clear about your career goals and how business school can help you achieve them. But most of all be yourself Make Your Leadership Case for Business School Extracurriculars: The Extras That Count The College Visit 101 Chat: MBA Admissions Tips READER COMMENTS > MORE SPECIAL REPORTS >  BW MALL  SPONSORED LINKS Buy a link now!