TOPIC: MBA and CFA: The Benefits of Pursuing Masters in Business Administration and

Chartered Financial Analyst Degree on the Business Career of Business Administration

Graduates.
Thesis Statement: Post graduate degrees specifically Masters in Business Administration and
Chartered Financial Analyst have given aids to business administration graduates in terms of
higher salary, career opportunities gained, and business connections and networking gathered for
the solid background in their business careers.

OUTLINE
I.

II.

III.

Introduction
A. Reasons
B. Post graduate degrees specifically Masters in Business Administration and
Chartered Financial Analyst have given aids to business administration
graduates in terms of higher salary, career opportunities gained, and business
connections and networking gathered for the solid background in their
business careers.
Body
A. Higher Income
1. Higher than employees with regular master qualifications
2. Rate in the Philippines
B. Career Opportunities
1. Competitive Advancement
2. Open new opportunities
C. Business Connections and Networking
1. Establish business contacts and referrals
2. Gain opportunities in networking
Conclusion
A. Benefits
B. Creating edge
C. MBA with CFA track

During the early years of college, it is common to assume that after graduating they

would easily find a job in different companies, banks and firms. There is one thing though that
they may not be aware of, that todays standard has changed. It is not just enough to finish a four
year degree. That is because, if we relate Herbert Spencers Biological Theory that, for the
increase in fertility consequent upon the deplethoric state would increase population which, in
turn, lead to a greater competition for food (Coontz, 2003; 54). This days generation has become
very competitive in all aspects not just for food that in educational standard, a four year degree
course attainment is not enough. This demand, in this case a job for graduates, changes the
course educational standard for graduates for companies prefer to hire professionals who has
more to offer. This standard of the society and industry calls for a graduate to pursue a post
graduate degree.
Additional education after college then, has become a necessary for career advancement
in the Business fields. Before the appearance of the CFA, many investment companies would pay
to send some of their best and brightest to business schools. These students would return with a
much better general business skill, but not necessarily the skills needed for high-level,
specialized asset-management responsibilities. These specialized skills were usually obtained on
the job as professionals worked their way up through the ranks. To generalize, the skills obtained
in business school were better suited for employees in more general disciplines, such as
marketing or general management. The CFA program was formulate to provide charter holders
with specialized skills, such as investment analysis, portfolio strategy and asset allocation. One
way to explain the differences in the programs is to say that the MBA program is very wide and a
foot deep, while the CFA program is a foot wide and a mile deep. The question is, what are the
benefits of these post graduate degrees? How can benefits encourage graduates to take these post
graduate degrees? What should business administration graduates choose between the two?

Postgraduate degrees, as defined in the Merriam-Webster's Dictionary (1995), are studies

done after earning a bachelor's degree or other degree. An example of these would be a Masters
of Business Administration (MBA) and Chartered Financial Analyst (CFA) programs. Jean Wilt,
Assistant Dean of Admissions and Career Development at the University of Michigan Business
School, argues that an MBA is the 'single best way to get an solid knowledge of the basic
business building blocks---accounting, finance, marketing, human resources and organizational
behavior---and it is the best way to round out your work experience.' The Masters of Business
Administration (MBA) is an internationally-recognized degree awarded to students who have
mastered the study of business (Kaufman, 2012). This program usually takes two years. While
CFA is a professional credential bestowed by the CFA Institute on financial and investment
professionals who have completed its program of study, passed all three levels of its
examinations, and met the other professional requirements, according to the CFA Institute. A
successful candidate is awarded the "CFA charter" and becomes a "CFA charter holder". The
program takes between two and five years to complete and pass all levels of examination. There
are more than 120,000 CFA charter holders worldwide (Janjigian, Horan, and Trzoinka,
2011:272). MBA and CFA have common benefits for those Business Administration graduates
whether it is major in Economics or Marketing.
Higher Salary
Professionals with an MBA under their belt are considered more experienced than their
counterparts who only have bachelors' degree. Having an MBA has an expectation that a
professional can bring more to the company, thus employers offer them higher salaries in
exchange for the ideas and innovations they have. The average salary in 2006, for gradate

completing a MBA in 2003 was US$ 166, 900 from Stanford University, US$ 140,200 in
INSEAD and US$ 135, 200 from London Business School (Dainty and Anderson, 2008: 8). The
top ranked schools in the FT Global MBA rankings reported increase in salary over 100% and all
schools, in the 100 schools ranking, reported increase 50%. The average salary for an MBA
graduate is considerably higher than that of an employee with regular master qualifications.
Payscale.com claims in their statistics that popular cities like Manila, Makati City, Quezon City
and Mandaluyong City have a rate of 547, 384php- 2,400,000, 600,00php- 1,625,000php,
599,938php and 360,000php per annum respectively. Schools where the student graduated are
also a big factor in determining ones salary. Person that holds an MBA who graduated in
popular universities have a rate of 510,000php- 5,612, 500php from Ateneo de Manila,
1,020,000php from De Lasalle Manila, and 1,380,000 from Asian Institute of Management
Manila. Smart Communications gives a rate of 1,800,000php, 930,000php in Genpact, and
446,640php in Citibank. Gender also affects the rate of an MBA holder. Most likely female has a
salary rate of 255,377php- 1, 831, 257php while male has 231, 118php- 2, 040, 000php.
Employees with a Master of Business Administration(MBA) Degree also has a median salary by
experience of 589,581php of those who worked for 1-4 years, 989, 091php for 5-9 years, 2,
2997, 637php for 10-19 years and 1, 980, 000php for 20 years or more.
Salaries in the securities industry tend to vary quite a bit and are influenced by a number
of factors, such as the type of firm, the amount of securities it underwrites, and the qualifications
of the applicant (Fitch, 2007;105). Salaries of Financial Analyst vary according to experience
and credentials when hired. Analysts with one to three years experience earned from $35,000 to
$47,750 in small companies and from $41,500 to $52,500 in large companies in 2005, according
to Robert Half International. Senior analysts in small companies had salary ranges from $42,250

to $54,750; salaries ranged from $53,000 to $68,250 for those employed in companies with sales
above $250 million. These salary figures do not include annual performance bonus, which may
be up to two-thirds of base salary. Salaries paid by regional brokerage firms are generally less
than those paid by the top Wall Street investment banks, sometimes called Bulge Bracket firms
because they are active in all major financial markets serviced by the securities industry. The
CFA Institute also covered in their 2005 compensation survey the comparison effects of
compensation roles with or without the CFA charter. The gap between those with charter and
those without it is substantial, regardless of experience. The median 2007 US compensation was
US$195,000, and for those professionals with 10+ years of experience, that figure rose to
US$264,000. CFA Institute members in the United States reported median compensation ranging
from US$158,000 to US$456,000 per year, depending on their occupation. Overall, the
compensation was highest in the United States and United Kingdom, but varied by position,
years of experience, and country. A Chartered Financial Analyst holder in the Philippines has a
rate of 276, 000php- 4,020,000php and 1, 800,000php in popular cities like Makati City and
Manila. While a popular company namely SGV & Co. gives a rate of 228, 000php per annum,
according to Payscale.com
Career Opportunities
An MBA is a particularly good background for those who aspire to senior level
managemnet responsibilities or to entreprenuership. Some career fields, such as brand
management, are difficult without an MBA ( Jones and Harris, 2007; 136). In addition, an MBA
may be necesary to advance within some fields, such as investment banking and consulting.
Relatively, MBA graduates are desirable in any job market; it will give professionals the
opportunity they need to advance in the business world. MBA can develop a career to its full

potential at an accelerated pace. It can open the door to many new opportunities; sectors or
functions previously unconsidered, senior level roles, or roles that require an MBA and were
previously out of reach. MBA is advantageous in so many ways, regardless of the industry, an
MBA is an advantage for a professional because companies will always need to hire people for
management positions who have more to offer. Professionals who holds an MBA are often
considered more for jobs and even on promotions, because the prestige of the degree also comes
with the knowledge that was worked hard for in between juggling responsibilities; an admirable
trait, and companies' would like their employees to emulate. An MBA program prepares
candidate as highly qualified leaders. The specialized skills and leadership qualities taught in
MBA programs provide professionals with a competitive advantage over others. Most leading
business organizations prefer to hire MBA's for higher management positions.
The Financial Times notes, "Among the countless finance degrees around the world, the
Chartered Financial Analyst qualification has become the gold standard." This signifies that CFA
is now the "gold standard" of Wall Street qualifications due to its rigor. CFA Institute claims that
virtually every major financial services firm, consultancy, bank, brokerage, and insurance
company worldwide employs CFA charter holders. The CFA charter provides a strong foundation
for a wide range of career paths in the investment profession. The most frequently held positions
among charter holders are analysts and portfolio managers, though many serve as senior
managers, strategists, and advisors. The firms that hire CFA charter holders know that the charter
signifies not only subject competence, but also a dedication to knowledge, professional expertise,
and high ethical standards. The top employers of CFA charter holders are global investment
banks, mostly in their asset management and research divisions. CFA designation gives an
advantage to professionals who aspire to work in these companies.

Connection and Networking Opportunities

Personal networking takes place through professional associations, alumni groups and
clubs (Stanton and Lemer, 2010; 55) and social networking during the MBA academic term helps
in establishing business contacts and referrals. Professionals can avail these contacts in
improving their business position in the market in the long run. Internships, which are required
of many MBA programs, are a way to experience working on a companies and industries they
are interested in. Most business schools sponsor events such as panels and mixers, where MBA
students can meet a lot of people around the world and beyond. Additionally, many business
schools' career services department will host networking events, where potential employers will
come and introduce themselves to them. All of these will prove the invaluable assets as MBA
students look for the job after graduation. As one graduate explained in Business Insight
magazine, " After what you go through together, the partnerships you forge during your MBA are
for life- you can find a business partner, a mentor, a friend, and endless career opportunities."
As CFA Institute asserts, a CFA candidate can join CFA Institute and local investment
societies. These memberships offer a multitude of ongoing educational and professional
development, as well as networking opportunities and members-only access CFA Institute's and
local societies' job site. One of the most important components of this global community of CFA
charter holders is the network of over 130 local member societies that work with both candidates
and members in specific locations around the world. The local CFA Societies support charter
holders throughout their careers by advocating for investment professionals and market fairness
with regulatory bodies and providing access to local professional networks, educational events,
and programming. Developing globally and locally relevant resources and research and
delivering other career-enhancing services are also included.

The Master of Business Administration(MBA) and Chartered Financial Analysts have a

common benefits for those Business Administration graduates, these postgraduate degrees are
very desirable to our industry for having very big advantages in salaries, career advancement and
having connections to the business world. These benefits encourage business administration
graduates through having an edge in their business field. MBA and CFA graduates are considered
to be more successful than their counterparts because of having more expertise and broader
knowledge about business .
In this study, MBA and CFA programs shows that pursuing to take them after graduating
a bachelors degree in business really opens a door for many opportunities because companies
hires people who have more to offer. For those Business Administration graduates who wanted a
career

advancement and has been thinking to whether obtain a Master of Business

Administration or The CFA Institutes Chartered Financial Analyst designation, both have their
advantages but considering the expense of the former and the difficulty of attaining the latter,
choosing between the two makes a difficult decision.To attract students, graduate institutions
have begun to teach a large portion of the CFA program within the graduate business curriculum
and some have gone as far as to create a CFA track within their MBA course of study, allowing
students to obtain an MBA and a CFA at the same time. For those considering attaining both a
graduate degree and the CFA certification, one of these programs is the most efficient way to get
the best of both worlds.
With growing population comes more competition, thus we recommend business
administration graduates who want to succeed in the business world to take further risks and
explore to the new possibilities in this field through gaining more expertise and knowlegde in
these post graduate degrees.

APPENDIX A
CHARTS AND GRAPHS

(Median Salary of an employee with an MBA degree by city, school, company, gender and years
of experience, Payscale.com)

(Median Salary of an employee with an MBA degree by years of experience, statistics from
Payscale.com).

(CFA Institute survey)

(Median salary of a financial analyst with a CFA by city, company, gender, and years of
experience, Payscale.com)

(Median salary of an financial analyst with a CFA by industry, Payscale.com).

(July 2014 statistics of top 10 employers of CFA charter holders)

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