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Why IIM graduates are paid so much ?

Last time my colleagues and I were given an annual target, it was “modest” net profit figure of 60 times our base salaries and most of us accomplished it. Though this could be considered as one off case as targets for people working in corporate banking averages 40~90 times the base salary in top banks. The loan sizes people deal with are more than Rs. 50 Crores and considering huge loan size the numbers can be achieved. Even excluding corporate banking profiles, IIM and top 20 B School graduates are given multifold targets and the industry expects the same to be achievable. There is no pompousness in touting the achievement as that is the reality. Companies wont pay that much unless they expect the candidate to bring them multi fold in return.

As students of IIMs and other top B-Schools, we were succumbed to gruelling sessions of work and play which sometimes extend till 4~5 days continuously. This process would repeat multiple times in a trimester. I dont say that the output was always great but if we consider all other parameters and time constraints, it was considered to be good. We were expected to perform under similar situations in corporate world, not continuously though. I say that in situations where there was lots of data or limited data, we were trained to take calculated decisions.

There is a misconception among public that most of the IIM graduates get Rs. 1 crore jobs but that is not true. Typically all these 1 crore jobs are the ones based out of foreign locations with higher cost of living. In addition, most of these 1 crore jobs are trading related where people can make a killing if they bring higher table profits to their firms. In some of the firms, 25% profit is shared with employees. But all these are one off cases and does not reflect the broad spectrum of job profiles.

To conclude I would say that the average salaries enjoyed by IIM graduates are considerably high but so do the value extracted by the companies from them.