Posted by: catindiaonline | October 25, 2008

Placements and Salaries: Myths and Realities at IIM-A

Today I received special requests from a dozen of readers to write something about salary. Hmmm… fat salary, money.. the basic reason for majority to come to this coveted institute! Tonight, I am going to break some heart, I am sure :). But, for many this write-up will be an eye-opener.

Let me begin with a table:

Item

2003

2004

2005

Overseas placements

36

38

70

Indian placements

148

126

179

Highest salary Domestic

12 lakhs

12 lakhs

14.5 lakhs

Average salary domestic

6.2 lakhs

7.1 lakhs

7.9 lakhs

Highest salary overseas

90 thousand USD

96 thousand USD

152 thousand USD

Average Overseas Salary

58 thousand USD

58 thousand USD

80 thousand USD

% of investment bankers

14%

12%

40%

These are not any private data, all available at http://www.iimahd.ernet.in. Can you see what I am pointing here? Number of investment bankers are hardly 15%; 2005 placements are misleading, only 15% got overseas I-banker placements as usual – rest were all domestic I-bankers. In 2006, the number of overseas I-bankers have increased big time but you can’t take that as a trend. I was there, a certain foriegn I-bank went crazy and hired every possible face! That may happen once in 10-15 years. So, everyone joining IIMA can’t be an I-banker, isn’t it?
Your next option is then consultancy, isn’t it? That’s what you dream of as a next alternative. There is a hope then dude! In 2003, only 6% got consulting, no overseas placements there. In 2004, 16% – no overseas again. In 2005, staggering 20% with 9 overseas placements.
The story is that on average people get 7-8 lakhs as compensation – that too cost to the company. What’s that? The figure 8 lakh is a big bluff – let me tell you. Company will cut certain money as tax, benefits, etc. etc. After tax et al. one gets 60% of it as cash in hand. So, 4.8 lakhs say as a mean value. Turns out to be 40K per month. So, why are people crazy about IIMs then?

For rest go to CAT India Online’s CATclub

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