How are MBA schools responding after being shaken by the recent economic crisis?
Sunday, November 30, 2008 More Good News “In a closely watched move that may be followed across Wall Street, the top executives at Goldman Sachs Group Inc. [GSG] have decided to forgo their 2008 bonuses. In doing so, they are giving up potentially tens of millions of dollars in payouts in a year that reshaped the securities industry. … The executives will only be eligible for their base salaries, $600,000 for each. A firm spokesman said the executives felt it was ‘the right thing’ to do. … The debate over bonuses and how much should be paid out has been raging for months across Wall Street. Some investment bankers have argued that even if it was an ugly year, only a handful of people are responsible for the losses and not everyone should be punished for that. … Many of these employees performed well in 2008 despite the market turmoil, these people say, but could get plucked away by rival firms if compensation practices are significantly altered. … At many financial firms, about
WASHINGTON – The master’s of business administration degree is undergoing a period of self-examination. Applications for graduate-level business schools traditionally increase during a recession, and today’s MBA programs are seeing that rise in the current financial meltdown. But in an economic crisis that has vilified Wall Street for being reckless, MBA programs face the need to address the pressing issues that have been raised in the financial sector and the shifting expectations of their incoming students. “Faculty members have always tweaked and revised their courses to stay current, but what is happening now is so unprecedented within our lifetime that there is indeed heightened conversation about it,” said Jett Pihakis, associate dean of the MBA Program at the McDonough School of Business of Georgetown University. Last fall, McDonough offered a course that explored past and present financial crises, which is scheduled to be taught again in the upcoming fall semester. Other course
