The biennial Forbes survey, compiled in terms of gain on expenses, questioned alumni from the class of 2004 to determine the results and saw London Business School move up from number two in 2007 to re-capture the top spot which it also held in 2005.
Alumni were asked for their pre-MBA salaries as well as compensation figures for three of the first five years after getting their degrees. Post-MBA salaries were then compared with opportunity cost (tuition and forgone salary while in school). Salary figures are adjusted to account for cost-of-living expenses and discounted the earnings gains, using a rate tied to money market yields.
Sabine Vinck, Associate Dean, Degree Programmes said, "I am delighted that we have re-claimed the number one position in this ranking. This result demonstrates that London Business School offers excellent return on investment and that our alumni compensation levels post-graduation are among the highest in the world.
While we do not allow rankings to drive our strategy, it is gratifying nonetheless that the value of a London Business School MBA has been so categorically recognised. I would like to thank all those alumni who took the time to complete this survey."
The Forbes ranking consists of three separate tables: US programmes, non-US one-year programmes, and non-US two-year programmes. They do not produce a combined rankings table. Insead was ranked first in the one year programmes outside the US, with Stanford the top US programme. A full breakdown of the rankings can now be found on the Forbes website. The rankings issue of the magazine will be on newsstands from 7 August.