"The ranking is intended to give a thorough assessment of the nominated Masters in Management programmes, as well as an insight into participating business schools and their alumni. It is compiled using data from two sets of surveys – one completed by alumni who graduated from the respective programmes three years ago and the other by the business schools."
The Financial Times contacted 9,907 alumni and 4,331 of them completed an on-line survey – a response rate of 44 per cent, two percentage points higher than last year. Each year, an elite subset of students participate in the Community of European Management Schools (Cems) Master in International Management programme and, if successful, are awarded a second degree, in addition to the home degree of their alma mater.
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“The following process is applied to salary data before it is used to calculate the salary figure presented in “weighted salary (US$)”.
To start with, salary data of alumni working in the non-profit and public service sectors, or who are still full-time students, are removed.
Purchasing Power Parity (PPP) rates supplied by the World Bank are then used to convert the remaining salary data to US dollar PPP equivalent figures. PPP rates are currency conversion rates which are applied to iron out differences in purchasing power between different currencies, in this case, so that alumni salary data can be standardised and compared meaningfully.
After this conversion has been completed, the very highest and lowest salaries are excluded before the average salary is calculated for each school.
For larger schools – those with more than 50 alumni responses – there is one further stage in the process: the average salaries are weighted to reflect the variation in salaries between different employment sectors (see graphic).
The weights are derived from a breakdown of the sectors in which alumni are working. Average salaries within sectors are calculated for each school. The overall sector weights are then used to calculate the proportion that each sector salary average will contribute to the total average figure for a school."
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