According to new research from the Forté Foundation, women and minorities with an MBA are earning significantly more in their first post-MBA job, but persistent pay gaps and promotion barriers continue to hamper long-term career equality.
Men’s salaries increased by 168% from their pre-MBA role to their current position ($US216,487 average), while women’s increased by 108% to $179,987
The 2025 Forté Foundation MBA Outcomes report, based on a survey of more than 1,000 MBA alumni, found that in the first post-MBA job, women’s salaries rose 52%, on average, to $US131,449 from their last pre-MBA role, but men’s surged higher, or 73% to $US140,007.
Male non under-represented minorities (URMs) saw the biggest pay hike of 74%, on average, from their last pre-MBA job to $US137,569 in their first post-MBA role, followed by URM men of 72% to $US144,431.
Women still saw a significant, but smaller, salary bump, or 57% for URM women to $US128,860, on average, and 51% for non-URM women to $US132,304.
Despite these gains, the gender pay gap has remained stubbornly wide. In their current roles, men earn 17% more on average than women—virtually unchanged from previous Forté studies in 2021 and 2023. Women also continue to trail men in promotions, leadership responsibilities, and proximity to executive-level roles.
“Leadership barriers have actually increased in the past two years, particularly due to a lack of structured career development plans and sponsorship for women and minorities,” said Forté Foundation CEO Elissa Sangster. “Too many MBA graduates—especially women and underrepresented groups—believe they must change employers to advance. That’s not how effective talent strategies should work.”
Key Findings
- Promotion Disparity: Men reported receiving an average of 2.3 promotions post-MBA, compared to 1.4 for women. Non-URM women saw the steepest drop in promotions since 2023.
- Leadership Lag: Men manage more direct reports (3.0 vs. 1.6 for women) and larger budgets. They are also, on average, 3.8 levels away from the CEO role, compared to 4.3 levels for women.
- Lack of Career Planning: A growing number of MBA graduates, especially minorities, report having no formal process for career development—63% of URM men and 53% of URM and non-URM women.
- Lower Career Satisfaction: Women continue to express lower levels of satisfaction across role, salary, and advancement opportunities compared to men. Overall satisfaction scores declined for both genders since 2023.
- Job Mobility: Women and minorities are more likely to leave their job due to limited advancement opportunities. Nearly half of URM men (53%) and URM women (46%) plan to change jobs within the next year.
- Women Lead in AI Adoption: Female MBA grads are using AI more actively for job searching and professional development, including resume optimisation and interview prep.
- Workplace Values Diverge: Women place greater value on flexible work, paid time off, and DEI initiatives. Men tend to prioritise financial incentives like stock options.
- Perception Gap: Men are significantly more likely to believe that gender equality has been achieved in the workplace, scoring 3.1 out of 5 on this measure compared to women at 2.2.
The survey was conducted between October 24 and December 18, 2024, with responses from 1,047 MBA alumni from more than 60 leading global business schools, including Harvard Business School, London Business School, and the University of Toronto’s Rotman School of Management.
Source – https://www.mbanews.com.au/mba-salary-bump-forte-foundation/