There are many investment banks that pay their employees to earn a Master of Business Administration (MBA). Earning one of these degrees is a great help for those who want to climb the investment banking ladder. However, for those who want to be promoted, obtaining an MBA is not always necessary, and those seeking this degree have a few things to keep in mind.
- Obtaining an MBA is expensive and time-consuming, but it can be useful for investment bankers looking to get promoted.
- The tuition fee for an MBA program alone may exceed $160,000, and it usually takes about 2 years to complete.
- Goldman Sachs provides tuition assistance for employees to study for MBA, and provides MBA scholarships for first-year business school students.
- Robert W. Baird & Co. has a project that can pay 100% of the MBA tuition and book fees for employees.
- Credit Suisse has an MBA scholarship program that provides tuition assistance, focusing on first-year MBA students.
In the past few decades, MBA has become more and more common, and the cost of obtaining it has also become higher. Tuition fees for many courses range from US$55,727 to US$161,810 for students, plus living expenses, books, and other expenses during the course.Full-time courses usually take two years. Companies can help pay for this fee, but any amount they provide in excess of a certain tax allowance is taxable. As of 2020, this exemption is US$5,250.
Even with these factors in mind, many people who work in investment banking find that obtaining an MBA can help them improve their positions. For example, senior bankers are likely to have one of these advanced degrees. At the same time, investment bankers should remember that for some investment banking functions, an MBA is more valuable than others. Those engaged in trading, sales, or portfolio management are unlikely to have this degree.
In addition, investment bankers must remember that hiring managers in their industry tend to find candidates from top schools; therefore, an MBA from such a program may be more valuable than a degree from a less prestigious school. For those who have considered the above variables, investment banks have different ways to help employees earn an MBA degree.
Goldman Sachs Group Corporation (NYSE: GS) is one of the world’s largest investment banks, helping its employees to study for MBA and other degrees through tuition subsidies. The company also provides MBA scholarships to first-year business school students who are female, Hispanic, black, or Native American. The company evaluates scholarship candidates, and after they complete the summer assistant interview process, the scholarship will award outstanding leadership and community achievements. Scholarship recipients will receive a cash award of US$35,000 in addition to the salary of the summer assistant. If a candidate completes a summer internship and accepts a full-time job, in addition to the full-time signing bonus, he will receive $40,000 from Goldman Sachs.
As long as certain criteria are met, the Baird Scholar program of Robert W. Baird & Co. Inc., an employee-owned financial institution, will pay 100% of the MBA tuition and book fees. The program caters to high-performing employees who have performed well in the company’s first few years and have demonstrated a commitment to investment banking.
To be funded, employees must attend an approved business school, work for Baird during the summer of the first year of the business school, and then return to the company as an employee after completing the MBA program.
The MBA scholarship of Credit Suisse Group AG (NYSE: CS) is similar to the Goldman Sachs program in some respects. Credit Suisse’s scholarship program is for first-year business school students who are either women, disabled, veterans, LGBTQ, or of Hispanic, African-American, or Native American descent.
Eligible candidates must take full-time business school courses and are eligible for summer internships in the summer after the first year of business school. Scholarship candidates should have a strong interest in a career in investment banking and be successful in leadership, academic, and professional careers.
The researcher received a $40,000 stipend in the first year of the business school and a summer internship at the investment bank of Credit Suisse’s US office. If students complete a summer internship and accept a full-time job offer from Credit Suisse, they can also earn another $40,000 in their second year of business school.
Although many investment banks pay for MBAs, those who are interested in taking advantage of this type of opportunity need to keep some things in mind. For beginners, MBA is not always the ticket to promotion, because this degree is not common in certain investment banking functions, and some people have made great progress without it. In addition, many investment banks have a history of recruiting from top business school programs, so bankers considering an MBA should keep in mind the prestige of any school they target.