Just to show you all that I move in high circles, here I am in The Wall Street Journal! I posted my questions in response to a post by a laid-off MBA, age 40, who was a senior vp for Lehman Brothers. The responses ranged from helpful advice (network!) and pep talks (you'll get another job!)to sneering comments about overpaid MBAs. My response was a series of questions and, much to my surprise, I got an answer. Both are below. Honestly, I still don't know what those people do all day (the title of a Richard Scarry book much loved by children) and why they make so much. Nevertheless, for what it's worth:
I am a teacher and so naive about the high finance world. Here are 3 questions:
1. What exactly did all these vice-presidents DO?
2. What exactly does the MBA qualify you for? Why didn’t these hyper-educated people see problems brewing?
3. The RUDE question: how much money (salary PLUS bonus) did these vice-presidents earn?
OKAY, 4 questions: Did these people save any money? How are they living now?
I lost a big hunk of my retirement savings and I’m not too far away, so I am curious about the all of the above.
Comment by frugalscholar - January 17, 2009 at 8:42 am
To Frugal Scholar:
1. VPs tell their analysts what to do
2. An MBA qualifies you for many things — though not having an MBA doesn’t disqualify you either. As for the trouble, who’s to say these hyper-educated people DIDN’T see problems brewing? I’m sure many did.
3. VPs earn at least 120-130K. Senior VPs are about double that. That’s not including bonus either. Bonus? Well…let’s just say an Analyst’s bonus can be well towards 6 figures.
Comment by Gold Teef - January 17, 2009 at 12:51 pm