Rise in MBA Salaries is Not Sustainable in the Long Run

If the share value goes to Zero then what will be the salary of a Manager. All levels of manager put their best efforts for the company. Hence their salary must be in the right proportion of the profit gained by the company.

Hi friends,.

According to me, the salary of higher level managers could be given in form of shares of company so that if value of shares rises, their salary rises and if it depreciates then the salary depreciates. This would end up the issue of salary rise of managers and also if higher level managers work hard for company to bring it up, they are suitably rewarded by hike in shares and vice-versa.

I think it also depends on the individual capability. The more you struggle the more you may be paid and indirectly it sustains for the long run.

According to me salary of any personnel is just a compensation for the work done by the personnel. Also the salary of the MBA personnel is fully dependent upon the market and no buddy know about market.

Well I do agree that rise in MBA salaries is not sustainable. This is because the business and economic cycle doesn't permit to be so. This can be well explained by taking an example. When the economy is booming and Business cycle is in its peak, the salary Will go up but when there s a downturn, the salaries are slashed. Hence as mentioned by Sarthak the macro factors does allow the salaries to be sustainable in the long run.

I think there are various extraneous factors which contribute to the decision of sustainability of the MBA income in the long run. The argument can not be generalized. If the macro factors are favourable then the salary will hike and if there are turbulent times then it may as well succumb.

Well it depends, if the company is doing good business and generating revenues then yes the rise is sustainable for the long run. If for some reasons like recession it may not b sustainable but for some exceptions. The recession that hit India and other countries is a good example. There were many sectors which were not effected fully by the recession.

yup!!m sure dat salaries might not b same n longrun :( coz of carelessness of enterprener dat company might suddenly come under danger n salaries fa every1 might get low ....if dat companies donar has d capability of surviving den he might take out his danger position n can come up wid d company :) sometimes oua outcome might go n well preceeding way so dat can get oua salary high but t is not sustainable coz v con say dat all companies go oly n upgoing manner ,may suddeny have some chance 2 godown so dat oua pay 2l get5 down ...