Master of Finance Salary

A master of finance salary can vary depending on the position held within the finance world. There are a number of career choices for master of finance degree holders, but these professionals will first need to complete an accredited degree program in order to qualify for these career options.

Aspiring top-tiered finance professionals must take courses like finance theory, investments, analytics, and financial strategies from a traditional college or university or from one of the best online master of finance degree programs. Having an advanced degree in finance can help financial pros get a higher salary than those who have graduated from baccalaureate programs in finance. According to U.S. News and World Report, the University of Pennsylvania offers the best finance graduate program in the country. It is also the largest business school in America today, and it has the biggest alumni network. It is followed by the University of Chicago that boasts an 87 percent full-time employment rate for graduates. Another top-ranking school is New York University. These accredited schools prepare students to land a job in a variety of finance-related careers in both private and government organizations.

Details About the Typical Master of Finance Salary Range

There is a wide variety of masters in finance salary rates. This is because degree holders may hold different finance-related positions and work in a variety of industries. They can work as personal financial advisors, financial managers, financial analysts, financial services sales agents, insurance underwriters, chartered financial analysts, credit risk management analysts, and mergers and acquisitions analysts.

Investing in a master of finance degree can pay off with a big salary jump. According to the U.S. News & World Report, B-school graduates with master’s degrees make $79,043 on average. Expected salaries are over $20,000 higher than at the bachelor’s level. Finance graduates enjoy a $106,757 median income with pay and bonuses combined. Data in the U.S. News article suggests that Wharton grads have the biggest $181,927 mean wage. Stanford University graduates reap a $180,831 average profit. Harvard and Columbia both have MBA in Finance averages above $175,000. New York University also performs well with a $173,513 median alumni salary.

The average master’s in finance salary potential ranges considerably by the industry in which the financial professional chooses to work. Consulting is the top-paying sector with a $140,187 average rate. The financial services industry comes in second with $130,001 median earnings. Finance graduates in the technology industry bring home mean revenue of $120,784. Retail and real estate finish the top five sectors with $115,370 and $112,086 respective salaries. The government industry is the worst-paid sector for finance professionals, making $74,825 on average. Master of finance graduates qualify for many upper-level management roles though. Let’s use the 2020 Robert Half Salary Guide to break down the digits for different finance jobs.

Portfolio Manager – Portfolio managers are master’s in finance grads who advise their clients on the right investment directions and oversee the stocks and savings plans clients use to expand their wealth. They monitor market conditions and develop investment plans to maximize client returns. Portfolio managers earn a median annual wage of $119,750. Salaries for portfolio managers range from $99,750 to $189,750.
Tax Director – Tax directors are master’s professionals who ensure corporate compliance with local, state, and federal tax codes. Tax directors supervise the auditing of tax filings for accuracy to avoid costly penalties. They also lead the tax planning process to reduce business tax payments and increase deductions. Tax directors make a mean yearly salary of $142,250. Tax directors generally land between $113,250 and $270,000.
SEC Reporting Director – SEC reporting directors review all financial forms filed to the Securities and Exchange Commission. SEC reporting directors work for publicly traded companies that must accurately disclose their revenue and losses. They lead research on the organization’s financial position. SEC reporting directors have a $142,250 average income. They make $117,750 to $223,750 per year.
Financial Project Manager – Financial project managers handle the money matters of business projects from ideation to completion. They coordinate the cash flow for large projects. Financial project managers often have a master of finance and PMI certification to oversee project budgeting. They enjoy a mean salary of $126,250. Financial project managers receive between $99,000 and $200,750.
Business Development Officer – Business development officers may have an MBA in Finance to craft growth plans that better revenue. Business development officers propose new strategies to cut costs while boosting sales and also take the reins in pitching new corporate endeavors to investors. Business development officers reap median earnings of $117,250. Salaries range from $97,500 to $185,250.
Financial Risk Manager – Financial risk managers develop corporate controls to identify and diminish market risks. They pinpoint, evaluate, and abate risks to protect their organization’s bottom line. Financial risk managers create business continuity plans to prepare for and recover from disasters too. They can expect a mean yearly wage of $122,000. Financial risk managers earn $100,500 to $191,250.
Revenue Cycle Director – Revenue cycle directors work in health care to oversee the patient billing process and design profitable pricing strategies to collect reimbursements from third-party insurance carriers. Revenue cycle directors also handle appeals to resolve billing problems and insurance denials. They report an average annual wage of $94,750. Revenue cycle directors earn $78,250 to $149,750.
Hedge Fund Manager – Hedge fund managers are master of finance grads who run investments that pool money from multiple investors. Hedge fund managers utilize complex trading tactics to boost the performance of client assets and balance market risks to generate a strong ROI. Hedge fund managers enjoy average compensation of $103,303. Most hedge fund managers make from $71,000 to $256,000.
Financial Controller – Financial controllers coordinate the preparation of correct accounting, auditing, and budgeting statements. They lead entry- and mid-level analysts who compile the market forecasts and also strengthen internal controls to prevent fraud and reporting errors. Financial controllers have a median yearly wage of $177,750. Financial controllers normally make between $106,00 and $262,750.
Corporate Treasurer – Corporate treasurers utilize a master of finance to develop budgets that ensure a business’s financial success. They devise capital growth initiatives, fundraisers, and investment plans to expand cash flow. Corporate treasurers identify beneficial mergers and acquisitions too. They earn a mean annual salary of $192,750. Corporate treasurers report income of $112,000 to $484,250.
Chief Financial Officer – Chief Financial Officers (CFOs) have a C-Suite executive role coordinating all finance-related operations. Chief Financial Officers set the company’s financial goals and policies to improve fiscal growth and are senior strategic partners who advise CEOs on best financial practices. Chief Financial Officers boast big average earnings of $202,750. The majority of CFOs make $121,500 to $498,000.

This is not an exhaustive list of all master of finance job titles. For example, financial examiners receive a mean annual wage of $92,330. Purchasing managers bring home a $128,400 average paycheck. Compensation and benefits managers reap a median salary of $134,210. Personal financial advisors report mean yearly earnings of $119,290. Financial investment analysts are paid an average $94,160 salary. Data scientists benefit from a median income of $100,560. Insurance actuaries are compensated a mean $120,970 wage. Internal auditing managers collect average pay of $116,500. Business intelligence managers claim mean profits of $123,000 each year.

Master’s in finance salary projections vary based on job location as well. Business Insider picked the top 22 cities for making a high salary. The top five were San Jose, San Francisco, Washington DC, Boston, and New York City. Surprisingly, smaller cities like New Haven, Worcester, and Albany also made the list. Where can master of finance grads earn the most? Not surprisingly, the Bureau of Labor Statistics says the top-paying state for financial managers is New York with a $210,240 average. Financial management jobs in New Jersey provide a $177,410 mean wage. Delaware is the third highest-paying finance state with a $169,100 median rate. Graduates unimpressed by urban life can head to top-paying nonmetropolitan areas. For instance, northwestern Wisconsin offers a mean wage of $160,920 to its finance managers enjoying a slower-paced life.

Employment Outlook with a Master of Finance Degree

Making six figures is amazing if master of finance graduates can actually find jobs. How is the job market faring for finance master’s degree holders? The U.S. Department of Labor says the employment outlook is very bright. The hiring of upper-level financial managers is soaring by 16 percent. From 2018 to 2028, the market will add 104,700 new jobs in financial management. The number of financial managers nationwide will climb from 653,7600 to 758,300. That is more than double the 10-year job growth of seven percent expected in other management professions. This growth is because of increasing investment complexity, the changing regulatory environment, and emerging global finance. Top executives, including Chief Financial Officers (CFOs), will have the most competition. New C-Suite jobs will increase by six percent this decade for 150,600 in total. Jobs for financial analysts are also expanding by six percent.

The Graduate Management Admission Council (GMAC) records an average U.S. job placement rate of 89 percent for B-school alumni. For a master of finance degree holder, the employment rate is slightly lower at 83 percent. Nearly two-thirds of master’s graduates work for companies with multiple locations abroad. Some of the top finance employers in the nation include Goldman Sachs, JPMorgan Chase, Morgan Stanley, Deloitte, McKinsey, Citigroup, and Bank of America. Many top master of finance programs have even better employment outcomes. For example, The Financial Times ranked the University of Washington 1st for 99 percent job placement. The McIntire School of Commerce at the University of Virginia helps 98 percent of M.S. grads find jobs. Dartmouth’s Tuck School of Business has a three-month job offer rate of 98 percent. Other top B-schools include Harvard, Cornell, Emory, Duke, Northwestern, and Vanderbilt.

Increasing Master’s in Finance Salary with Certification

Certification is a voluntary, salary-boosting process where finance master’s grads can prove their skills. The most popular option is the Chartered Financial Analyst (CFA) certification. The CFA Institute found that certified members make 17 percent more money than their peers on average. Becoming a CFA Charterholder requires having at least a bachelor’s degree and 48 months of full-time work experience. Aspiring Chartered Financial Analysts engage in more than 900 self-study hours to master 10 curriculum topics. Joining the over 167,000 CFA members requires passing three levels of exams. Standard registration fees for each exam equal $950. Individuals sit for the 360-minute, computer-based CFA exams at more than 170 global locations. Only 20 percent of applicants finish the rigorous CFA path.

salary for a master of finance. Many upper-level finance jobs involved in filing SEC reports require or prefer the Certified Public Accountant (CPA) designation. The American Institute of CPAs reports that the certification boosts income by 15 percent. CPAs receive an average $1 million lifetime earnings bump ahead of their colleagues. All 50 states now require CPAs have 150 post-secondary credits for a master’s degree. Master of finance graduates can sit for the Uniform CPA Exam at Prometric centers four times annually. Aspiring Certified Public Accountants must achieve a 75 score or better on four, 240-minute testing sections that cost $208.40. Exam sections are titled Auditing & Attestation, Business Environment & Concepts, Financial Accounting & Reporting, and Regulation. In the first quarter of 2020, the CPA exam pass rate was only 47.97 percent.

Master of finance grads have several other choices to beef up their resumes and increase their salary potential. For instance, the Certified Financial Planner (CFP) designation goes to advisors who pass a 170-question exam of multiple-choice and case study questions in six hours. The Certified Investment Management Analyst (CIMA) program has a $9,000 non-number price and a 140-question, five-hour exam at Pearson VUE centers. The Certified Treasury Professional (CTP) title requires passing a 170-question exam during two annual testing windows and at least two years of experience. The Financial Risk Manager (FRM) certification entails completing one 100-question and one 80-question test from the Global Association of Risk Professionals. The Certified Revenue Cycle Executive (CRCE) credential mandates four or more years of health care experience and a four-section exam.

Types of Master’s Degree Programs Available in Finance

Convinced by the high average master of finance salary to attend B-school? Entering graduate business schools will require at least 120 semester credits of bachelor’s preparation. Most finance master’s programs seek a cumulative GPA of 2.75 or better. About 2,300 B-schools in more than 110 countries require graduate management admission test (GMAT) scores. Taking this three-hour entrance exam for $275 certifies applicants’ verbal and quantitative reasoning skills. On average, test-takers achieve a 556 GMAT score. Top B-schools, such as UChicago and UCLA, have median GMAT marks over 700. Applying to a master of finance degree program usually involves personal statements, letters of recommendation, and work histories too. Which master of finance program type is best to pursue? Here is an overview of the different master’s degrees in finance.

Master of Finance – The master of finance is an applied, practice-based graduate degree intended for career preparation. Most master of finance degrees last 12 to 24 months full-time with about 30-39 credits of courses. Expect course titles like Portfolio Management, Investment Banking, and Corporate Valuation. Master of finance curricula takes a non-thesis approach with capstone projects instead of research.
Master of Science in Finance – The Master of Science in Finance is a more technical STEM degree with quantitative research. Earning an M.S. in Finance generally takes 18-32 months with 36 or more semester credits. Expect science-based course titles like Computational Finance, Managerial Economics, and Financial Modeling. Most M.S. in Finance curricula ends with independent study projects and a thesis defense.
Master of Business Administration in Finance – The Master of Business Administration in Finance is a broader, more well-rounded B- school option. MBAs usually span 30 to 58 credits centered on a leadership core. Expect courses like Organizational Behavior, Operations Management, and Statistics before the finance specialization starts. An MBA in Finance curricula could include a consulting project, internship, or co-op.
Master of Financial Engineering – The master of financial engineering is another rigorous, quantitative STEM degree using math to solve financial issues. Getting an MFE degree entails 30-48 credits beyond a bachelor’s for at least 15 months. Expect course titles like Derivative Markets, Data Analytics, and Stochastic Calculus. Master of financial engineering curricula almost always leads to a semester-long thesis research project.
Master of Science in Taxation – The Master of Science in Taxation is an ultra-focused graduate finance degree for learning IRS regulations. Completing an MST program typically requires 30-39 credits at the 500 or level. Expect taking courses like Federal Income Taxation, Estate Planning, Tax Policy, and Partnership Taxation. Most MST degrees take 24 months or less with a capstone project rather than in-depth research.

Finance professionals should never stop learning and educating themselves. Doing so allows them to keep their skills fresh and stay on top of the competition. With this, they can get promoted to higher positions and earn more. They can work while studying at the same time. This can be a great investment for their earnings as they can expect more than the typical master of finance salary in the future.

Recommended reading:

Additional Sources: