MSA and MBA salaries compared?

[Chris P. Haskowsky]

I'm trying to decide whether to apply to an MBA or MSA.

MBA salaries are easily available in the US News rankings edition, which I have. I am interested in salaries for MSA programs. Wake Forest's site lists them at 49,000-57,000. I know very little about the business world. I found this ranking (https://www.bentley.edu/graduate/banner_ ... report.pdf) through a search of these boards, but they do not include salaries. Wake did not make the top 25 and is listed as honorable mention.

I want to make 6 figures in my first year. Can I do that with an MSA from a higher-ranked school? I got a 740 on the GMAT (48M,82Pct; 44V,97Pct), so I'm hoping to be competitive at most places. I would prefer accounting to business, but I'm mostly concerned about salary.

There's nothing special about Wake for me. I only noticed on its site that it gives salary data and that its MSA program claims to be a feeder program for the big 4 accounting firms.

[Chris P. Haskowsky]

I suppose a better way to phrase the question is, why do accountancy degrees lead to lower first-year salaries than do MBA's? Also, do the salaries go up after the first year?

[Lisa Anderson]

Dear Chris,

Generally, MSA programs are great for folks who truly want to do accounting, just accounting. At many schools, these programs have been designed for those needing that 5th year/additional credits to sit for the CPA. Thus they tend to be very low on the average work experience/average age spectrum as the students matriculate directly from undergraduate studies. Consequently, the starting salaries will be more in line with starting salaries for new accountants at the big 4. That is not to say that someone with more experience won't command a higher salary in the market, but if you find salary statistics for a MSA program, that is why the average is lower than for MBA programs (where the average work experience is higher).

I encourage you to make your choice (MBA v. MSA) based on your career goals--not on a potential salary. You cannot predict what salary you will be offered when you complete a graduate program as there are many factors at play that will influence that number--most of which have nothing to do with the school you attend. In reality, most MBA graduates in the US do not have a base salary in the six figures in their first post-MBA job. For some, they might hit six figures in base + bonus, but only a few select industries and top tier firms offer six figure base salaries to new MBAs of traditional, daytime programs. As with any industry, functional area or company, salaries always have the potential to increase with time based on the performance of the individual.

I think you need to consider your overall career goals and which program is a better fit--not just immediately, but in the long-term. Many MBA programs offer substantial electives in accounting, but you also have the core general management foundation for an executive role. MSA programs are all accounting with minimal exposure to other disciplines giving you a much narrower focus and, some would argue, less versatility/applicability as you advance up the corporate ladder. Depending on where you want your career to go, you need to determine which is more appropriate. Perhaps do some research on the education people in the types of roles you aspire to work in have? Not just the post-MBA role you desire, but the long-term role you aspire to. It might even be worthwhile to do some informational interviews with these people to ask what they think a more appropriate degree program might be--is one valued more than the other? Once you have more information, I think your choice of program will be easier for you.

Good luck,
Lisa

[Chris P. Haskowsky]

Many thanks for your thorough reply! This site looks like something that actually helps people.

You write that compensation "might hit six figures in base + bonus, but only a few select industries and top tier firms offer six figure base salaries to new MBAs." The listings in the most recent US News rankings suggest something a little stronger than "might:" roughly half of the top 50 ranked MBA schools reach six figures in base + bonus on average. Thus it is the norm at many schools. (I assume the figures are accurate; this, I know, is a big assumption.) If I could get into one of them, but chose an MSA, I'd be losing a lot of income. I think I am well-suited for either program, and would succeed in a career.

So I need to know what my chances are - of gaining admission to one of the 6-figure schools in US News and of being granted a scholarship. I have:

- no significant work experience (Although a 3rd or 4th-year student, in a presentation during our first week in college on choosing a major, encouraged us to major in what we liked, saying "your employers will train you to do your jobs," I received no job offer and no interviews.)

- BA on a full merit scholarship from a prestigious public school (whose b-school is in the top 20) with a major in religious studies, minor in philosophy, and A- grades in my lone calculus and economics courses.

- 3.6 GPA

- 740 GMAT

- post-bac major in math at a (different) state university with a cumulative GPA of 2.9. (Noteworthy: My part-time job drained my time, and I also absorbed an F in a math theory course that was way over my head, and not even required, hence the GPA below 3.0. Far more relevant to the business world were the B+'s I earned in two 400-level statistics courses.)

The math major, though, did make the GMAT super-easy. I've even taught courses and tutored for it.

So that's where I stand. I'll turn 33 this spring.

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The foregoing was originally much longer. I suppose I could narrow it down even further, specifically, to: how far can a 740 on the GMAT take someone with no experience?

[Lisa Anderson]

While academically there might not be many concerns on your ability to succeed in the classroom, there will be questions/concerns around your professional work experience (or lack of "significant work experience" per your post) and what you have been doing since college. At 33, you should have some semblance of a career on your resume with leadership and teamwork examples you can discuss in both your essays and interviews. Additionally, you will need to make a solid case for why you need an MBA to achieve your career goals in relation to your experience to date. Your chances of admission will greatly depend on how well you present your background and rationale for an MBA. Your essays, recommendations, resume and interview are critical, significant components in your evaluation, so it will be imperative you use those components to make a compelling case for your admission.

Good luck,
Lisa

[Lisa Anderson]

Dear Henry,

It is possible you could be accepted at the programs you note if you submitted a strong, overall application package. How competitive you are will depend on the strength of your application relative to the applicant pool. While you can't control the strength of all the other applications, you can do your best to ensure you present the best application possible. Your academic profile (GMAT and GPA) is a potential concern, but how much of one will depend on how you performed in specific coursework and your quantitative score on the GMAT. If you feel you submitted strong packages to these programs, then know you did the best you could. With regard to applying to other programs, I think it is always a prudent strategy for any candidate to apply to at least one program where your profile is viewed as above average.

Good luck,
Lisa

[henry.h.jiang]

how do I delete my posts?

[Lisa Anderson]

Writing an optional essay noting mitigating circumstances that affected your academic performance in college might help, but it will not assuage all of the concerns. Your average GMAT might further assuage the concern, but that will greatly depend on your quantitative score. The admissions committee needs to feel you can handle the rigor of the coursework and succeed in the program. Additionally, you are evaluated from an admissions perspective against other applicants on how you stack up academically. Thus your low GPA combined with an average GMAT might result in your application being less attractive than those applications with higher GMAT/GPA combinations. That is why the rest of your application must be strong to show how you will add value--make the admissions committee want you in the program.

Regards,
Lisa

[henry.h.jiang]

How do I delete my posts?

[Lisa Anderson]

Being an alumnus/a of a school can be helpful, but not always--it varies by the university or college. If the MBA program receives a high number of alumni applicants or has the philosophy that alumni of the university should go elsewhere for graduate work, then it is not going to be that helpful. Conversely, if the MBA program does not receive many alumni applications and/or wants to have more alumni in the program, then it could be helpful. Either way, being an alumnus/a is not going to get you in or even give you priority over others, but it might give you a more thorough review.

Regards,
Lisa