The two-year programme tops the ranking for offering graduates the best return on investment
London Business School's (LBS) two-year MBA has been ranked the world's best by Forbes for the fifth consecutive year.
The media company’s 10th biennial ranking of business schools is based on the return on investment made by graduates from the MBA class of 2012.
LBS alumni from that class realised a five-year gain of US$119,100 (£88,387), the highest of any two-year programme in the world, and it took the typical graduate just 3.4 years to pay back their investment.
In contrast, graduates from other international business schools offering two-year programmes had an average five-year gain of $74,300 (£55,103). The figure drops to $50,000 (£37,232) for graduates from US institutes.
To compile the list, Forbes compared graduates’ earnings in the five years since gaining an MBA to their opportunity cost – two years without a salary while taking and paying towards the programme. The company then measured total compensation, including salary, bonuses and exercised stock options.
The five-year MBA gain represents the net cumulative amount the typical alumni earned from 2012–17 after graduating versus staying in their pre-programme career. Schools are then ranked based on their five-year MBA gain.
“Going to business school represents one of the most significant professional, personal and financial investments that one can make,” said Gareth Howells, Executive Director of LBS’s MBA programme.
“That investment is for the long-term, rather than just about the role upon graduation. We are thrilled that the Forbes ranking recognises the career impact that the LBS MBA has on individuals’ careers."