Results of the 1999-2000 AACSB Salary Survey are in and the news, at least for faculty, is good. Faculty hiring is strong and shows no signs of letting up. Salaries for new doctorates in certain disciplines grew at a double-digit pace this year. Competition for experienced professors has created substantial premiums for new hires.

The overall 1999 average of 4.2 new hires per institution is up from 4.07 in 1998. Among accredited institutions, on average, five new people were added to business school faculty roles in 1999. Despite representing only 70 percent of responding institutions, accredited institutions accounted for nearly 83 percent of all reported new hires, almost 90 percent of all new hires at the rank of professor and 89 percent of all new doctorates hired. Nearly 75 percent of new hires have had some experience as a faculty member. Although representing only nine percent of incumbent faculty, CIS/MIS new hires represent more than 18 percent of all new hires and more than 25 percent of the ABDs hired in 1999.

New doctorate average salaries for all disciplines combined increased 15.4 percent in the two years between 1997 and 1999. This growth was not uniform across disciplines. Management information systems (CIS/MIS) and finance average new doctorate salaries each increased by about 20

percent that period. During this same period, professor, associate professor and assistant professor average salaries across all disciplines increased by 8.2, 8.3 and 9.6, respectively.

Between 1998 and 1999, average salaries for new doctorates in finance, marketing and information systems increased by 12.8, 11.3 and 9.1 percent, respectively. New doctorates now earn more than associate professors in the fields of accounting, information systems and finance. Average salaries for new doctorates in finance are a whopping 13.6 percent higher than associate professors in finance.

"Many deans believe that the market for new doctorates will continue to become more competitive," said Dan LeClair, AACSB director of information services and strategies. Three out of four institutions participating in the survey hired a new doctorate in 1999. Meanwhile, strong financial markets continue to motivate faculty retirements and a steady stream of programs require additional faculty. However, the number of doctoral degrees awarded has declined steadily for four

years, according to AACSB surveys. Many schools reduced the size of their doctoral programs in response to an oversupply in the early 1990s, as well as difficulties recruiting doctoral faculty in some areas, such as accounting.

The time commitment and challenge of earning a doctorate may now, more than ever before, seem less appealing to qualified candidates, said LeClair. "A continuing economic expansion and the digital revolution are fueling a healthy private sector job market and boosting salaries for college graduates. And with much of the business world now operating on ‘Internet time,’ the time and residency required for a doctoral degree may seem excessive to many students interested in graduate management education," he said. New types of MBA programs (e.g., flexible, weekend, Internet, accelerated, collaborative) have been invented in response to competitive pressures. "Doctoral degree programs may not experience the same competitive dynamic but will somehow need to innovate to support an expanding marketing for management education and applied research," said LeClair.

Concern about the future demand and supply of doctorally qualified faculty also may be affecting current demand. Anticipating a future crunch, some business schools are recruiting now. Schools hope to bring new faculty through the traditional tenure process before their most senior faculty members retire. AACSB is conducting research, using data from its business school questionnaire, in order to determine the seriousness of these concerns.

Growth in average salaries for most administrative positions was fairly modest between 1998 and 1999. Reflecting the expanding importance of non-degree programs in AACSB member institutions, assistant dean/director of executive education average salaries increased 13.2 percent between 1998 and 1999. Information systems directors experienced growth in average salaries close to 10 percent. For private institutions, average salaries for the executive education director increased by 14.1 percent. Directors of development and directors of communications/public relations in private institutions also experienced double-digit increases of 13.1 and 11.9 percent, respectively.

The annual survey is the 32nd such survey conducted by AACSB. There were 462 schools that voluntarily participated in the survey, which includes data on 23,531 faculty members and 3,711 administrators.

Initial results of the 1999-2000 survey were summarized in an electronic report and delivered via Email to all member representatives in December 1999. Additional copies of the electronic report (in Portable Document Format) are available for $35 by contacting AACSB. The Salary Survey Enhanced Print Report, also available for $35, reproduces these summary tables and includes an extended executive summary and additional tables and figures. Member representatives also may create and purchase custom reports (including 10-50 peer institutions) via the online Salary Survey Inquiry Service. The reports are produced automatically and delivered to the purchaser’s Email box within minutes.

1999-2000 Business Faculty Salaries by Discipline

1999-2000 Business Salaries for Administrative Personnel

 

Dean Associate Dean Assistant Dean   Mean $ in 000s % increase over 1998 Mean $ in 000s % increase over 1998 Mean $ in 000s % increase over 1998 Public 129.8 6.0 108.7 2.6 73.4 6.7 Private 144.2 3.1 111.0 0.0 65.6 (0.2) Accredited 145.0 5.1 113.2 2.0 73.7 5.9 Non-Accredited 103.1 2.0 81.3 (4.4) 59.3 3.0 All 134.2 4.6 109.5 1.6 70.9 4.7