MUMBAI/NEW DELHI: Crore-plus salaries have kept their date with B-school campuses, allaying apprehensions that a worsening global economy will keep multinational recruiters away this academic year. So far, two Indian Institutes of Management (IIMs) and Hyderabad-based Indian School of Business (ISB) have received at least five offers of over Rs 1 crore, raising confidence levels, two people associated with foreign recruitment said.
The number of crore-plus offers is expected to remain the same this year because the IIMs have seen a healthy rush of companies queuing up for summer internships. "Recruiters will not stop hiring nor will they cut salaries and take a hit on their brand image. We expect an 8-10% increase in salary for roles in India," says T Muralidharan, IIM-A alumnus and chairman of TMI Group, an HR firm.
The top recruiters will maintain their salary packages for foreign locations. "Global economies are passing through a tough phase and companies do not offer increments abroad, but they will continue to lure candidates with an attractive starting salary," he added.
Deutsche Bank has given pre-placement offers to three IIM students so far, one more than the number it recruited last year. Swiss pharma multinationalNovartis has hired two students from ISB this year, paying them dollar salaries which cross Rs 1 crore. Novartis, an ISB regular, is learnt to have offered $120,000 as salary and $70,000 as bonus to the two ISB students, who will be hired as financial analysts attached to the CFO's office in Basel.
ISB did not confirm the offers. The institute said in an email response that it was too early to talk about any kind of salary figures as the rolling placements process has just commenced.
"Goldman Sachs, Boston Consulting Group, Mckinsey and Cargill Foods too are in the process of hiring," said one person in the know of ISB placements. Parthenon Group, a global strategic advisory boutique, which made highest domestic offer of Rs 32 lakh at ISB last year for its Mumbai office, is likely to make a Rs 1 crore-plus offer to an ISB student for its London office, he said. Final placements begin in the third week of January.
The number of crore-plus offers is expected to remain the same this year because the IIMs have seen a healthy rush of companies queuing up for summer internships. "Recruiters will not stop hiring nor will they cut salaries and take a hit on their brand image. We expect an 8-10% increase in salary for roles in India," says T Muralidharan, IIM-A alumnus and chairman of TMI Group, an HR firm.
The top recruiters will maintain their salary packages for foreign locations. "Global economies are passing through a tough phase and companies do not offer increments abroad, but they will continue to lure candidates with an attractive starting salary," he added.
Deutsche Bank has given pre-placement offers to three IIM students so far, one more than the number it recruited last year. Swiss pharma multinationalNovartis has hired two students from ISB this year, paying them dollar salaries which cross Rs 1 crore. Novartis, an ISB regular, is learnt to have offered $120,000 as salary and $70,000 as bonus to the two ISB students, who will be hired as financial analysts attached to the CFO's office in Basel.
ISB did not confirm the offers. The institute said in an email response that it was too early to talk about any kind of salary figures as the rolling placements process has just commenced.
"Goldman Sachs, Boston Consulting Group, Mckinsey and Cargill Foods too are in the process of hiring," said one person in the know of ISB placements. Parthenon Group, a global strategic advisory boutique, which made highest domestic offer of Rs 32 lakh at ISB last year for its Mumbai office, is likely to make a Rs 1 crore-plus offer to an ISB student for its London office, he said. Final placements begin in the third week of January.
Campus salaries are considered to be the main differentiator while deciding the B-school pecking order. Most institutions underplay top salaries and highlight their pedagogy. IIMs and top BSchools do not give out individual salary details. Though IIM Ahmedabad has started giving out audited salary data, top recruiters have refused to disclose pay offerings to the institute, citing confidentiality norms. IIM Calcutta gives out the average salary offered to the batch, but IIM Bangalore does not share any salary figures.
The placement season is still two months away, but a few foreign recruiters prefer to hire towards the year-end. Hiring of fresh MBAs suffered in 2009 in the aftermath of the global financial crisis, when investment banks known for top-order salaries kept off B-schools.
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