Wall Street will pay a record $23.9 billion in bonuses this year after investment banks raked in profit from global expansion and demand for alternative investments such as hedge funds, according to an estimate released Tuesday by New York State Comptroller Alan Hevesi.
The bonus forecast is 17% higher than last year, Hevesi added. The average bonus this year will be $137,580, 15% up from 2005, he noted.
Bonuses will range from a few hundred dollars for support staff to tens of millions of dollars for key executives, Hevesi said. Last week, Morgan Stanley Chief Executive John Mack got a bonus of almost $40 million.
"The securities industry had another great year in 2006, with some of the largest firms having their best year ever. This translates into record year-end bonuses and great news for the region's economy," Hevesi said in a statement.
An overwhelming 95% of India’s leading B-school graduates are willing to forego hefty pay packages for the sake of a job profile of their choice, even though 79% of these students are keen on working offshore right at the start of their career, according to an Assocham Business Barometer Survey.
The survey was conducted among 271 students of top B-schools which include IIM (Kozhikode), Indian Institute of Foreign Trade, Institute of Management Technology (Ghaziabad), Symbiosis Institute of International Business (Pune), Xavier Institute of Management (Bhubaneswar), ICFAI Business School, and Birla Institute of Management Technology.
In connection with launching and developing the initiative of European Institute of Technology (EIT), intensely supported by President José Manuel Barroso, following elements should be considered:
With network communities having an increased influence in future world economy, it will be necessary to nourish initiatives as the Airbus and the cooperative development projects of the European automotive industry through relevant attachment to joint research forces, as presently under establishment under the auspices of the EIT. Additional links to CERN could be most appropriate.
The proposed structure organized within the framework of Knowledge and Innovation Communities (KIC’s), under the strategic direction of a Governing Board may contain insufficient leadership possbilities. Thus it is strongly recommended to intensify leadership and structure profile to create and sustain adequate commitment and identity. Future world economic development will demand new priority paradigms additional to traditional technologies. Thus the EIT initiative portfolio should adapt trans disciplinarily and multiculturally, thus including the business and service sector together with elements from the humanities as relevant focal points.
For inspiration, please visit http://www.stanford.edu/group/dschool/ (Big Picture, 03 Multidisciplinary Approach) together with www.globalisering.dk publishing the Danish approach to the future challenges of Globalization. Modernising and reforming the professional career and functional conditions in general for the academia will be relevant as part of developing the EIT. This will not only comprise incentive measures and packages, however, focus should also be set on professional conditions as key elements of development.
With Business School competences as relevant platform for the development of cross cultural and trans disciplinary faculties, it is advisable that the Business School Community be represented in the management structure – politically as well as operationally – thus participating in the development of the strongest possible governance process and structure. The above has been communicated to the EU, Directorate-General for Educationand Culture together with Commissioner Jan Figel.
London has always been a mecca for the business world's most talented MBA graduates, and recent trends indicate that graduates feel that there are superb opportunities citing to colleagues that the 'streets are paved with gold'. London has always scored high in preference among MBA graduates. Particularly in finance, larger numbers are targeting the City with its fast-paced lifestyle and telephone number salaries. For example, starting salaries for recent graduates of London Business School going into finance have reported $102k + signing bonuses.
"There is intense competition at the moment to hire the most talented and most intellectually able people ... We have a shortage of talent both within countries and between countries, and there is an intense battle between companies trying to hire the most talented workers and also between countries which are looking to recruit talented young immigrants.”
AN MBA is about much more than a piece of paper. It’s not essay marks or
assignment results that define participants’ success: it’s whether or not they
finish the course with the skills, experience and contacts that will help them
to develop their careers and their organisations. ______
A handful of business schools offer specialised MBA programmes for the public
sector, including Birmingham, Nottingham and Warwick... But Jeanette Purcell,
chief executive of the Association of MBAs, says that this specialist market is
static. “They were established some years ago in response to the market, but
demand isn’t growing.” ______
Study where the money is, August 31, 2006, The Times Steve Little, a Brit who recently graduated from Tuck Business School in the US,
took some classes in the US and UK before deciding where to apply. “The energy
in the classroom is just at a higher level in the US. You got a real feeling
that anything is possible; there is a buzz that I just didn’t get in the UK.”
Historically, business schools have been ranked by different media and education analysts more often than other segments of higher education. In the past years, however, the progressive globalisation of higher education, and particularly of postgraduate programmes, has resulted in increasing competition among universities to attract a larger number of international students, mobility of professors and knowledge as well as in the proliferation of university rankings. This month, Newsweek magazine has published a ranking of global universities where, for the first time, 19 out of the top 45 listed instittuions are non-US universities. Richard Levin, who writes the cover story of this survey, explains that "as never before in their long history, universities have become instruments of national competition as well as instruments of peace. They are the locus of the scientific discoveries that move economies forward, and the primary means of educating the talent required to obtain and maintain competitive advantage. But at the same time, the opening of national borders to the flow of goods, services, information and especially people has made universities a powerful force for global integration, mutual understanding and geopolitical stability".
On the other hand, US News and World report has published recently its America´s Best Graduate Schools 2007 - Ranking of Top Business Schools. The Complete Guide to Business Schools. This survey is a classical in the US, athough not exempted from critics. In a recommendable article published in The New York Times on August 16th, David Leonhardt affirms that "by now, 23 years after U.S. News got into this game, the responses have become pretty predictable. Disappointed college officials dismiss the ranking as being beneath the lofty aims of a university, while administrators pleased with their status order new marketing materials bragging about it — and then tell anyone who asks that, obviously, they realize the ranking is beneath the lofty aims of a university".
This week's issue of The Economist also comments on the US News and World Report rankings. Interestingly, its author opts for pragmatism: "whether the rankings are fair is beside the point, because they are wildly influential. In the 1983 survey barely half of the presidents bothered to respond. Today, only a handful dare abstain".
I have argued in this blog -where rankings have been a recurrent issue of discussion- that rankings, if conducted according to the basic principles of impartiality, transparency and consistency, add real value to the market. In the past years, many new ranking schemes have entered the scene, evidence that the market demands them. Different stakeholders –prospective students, recruiters and corporate clients- see rankings as additional criteria to gather further information and make the educational offerings more easily comparable. However, the remaining question is how can we make rankings more consistent and reliable.
The Wall Street Journal's article of 2005, details the extra measures that Proctor & Gamble have taken to effectively
court what's described as a "cynical and media-savvy" generation of new MBAs.
From exercising sensitivity to students' schedules in timing correspondence and
treating the recruiting process as an exercise in branding and marketing, this
now novel approach might become the new norm in hiring.
Futher to the article, other recruiters agree with P&G about the need for a
more personal courtship of M.B.A.s. "There's a cacophony of noise out there
as M.B.A.s are inundated with information from more recruiters," says
David Sanderson, global recruiting chief at Bain, a major management
consultancy. Beyond the usual presentations to a mass audience, Bain also
connects its consultants and partners with specific M.B.A. prospects and stages
events and dinners for smaller, targeted groups of students.