- BSchool average salaries that have been posted in the media are only a ploy to attract the best students. Rather in Bschool speak, its for grabbing the marketshare of the students.
- Sometimes only 5% of the batch gets the average salary that is quoted. And these guys get it because they have international placements and the exchange rate is the prime culprit. At Purchasing power parity (another post for this!) they will be again below the average salary
- Most of the batch (50% plus) at any Indian BSchool, even the IIMs will give an arm and a leg for a post tax cash in hand figure of 30k p.m. And before you gasp lemme tell you that Rs.30,000 p.m. in hand post tax is a lot of money for people with even 2 years of work experience. I dont know whether you expect to be worth your weight in gold after 2 years of acads but then dont have great expectations from an MBA.
- The cash component, and then non cash perks, and some more factor of safety by the institute plus deferred bonuses and a whole lot of stuff is added up to give you those near million rupee salaries that have been doing the rounds in the media. The biggest culprit here is the joining bonus which is usually recovered if you leave the firm within 3 years. So this figure hikes up the CTC by upto Rs.70,000.
- Even for those $150,000+ figures quoted by the IIMs, the in-hand component would be in the region of $60,000-$80,000. So chill, its just the exchange rate stupid.
- Yes there are a few Indian corporates that truly give you huge salaries. The post tax from these guys works out to Rs.45,000-Rs.50,000. But then there are only 3-5 such companies. And their total intake is just 2-3 people per company.
March 24, 2006
The truth about BSchool placements
There has been a hype in the media over the recent placement season of India's top Bschools. Each and every insitute worth its name has been posting average salaries and wot not. Now lemme tell you what all this hype and hoopla is about. And having spent a year at one of India's leading Bschools and having been a part of the process I think my words will have some credibility to them.