Jun 25th 2020A RECENT STUDY of Britain’s 178 providers of higher education sought to rank how vulnerable they were to the current downturn. Most of
A RECENT STUDY of Britain’s 178 providers of higher education sought to rank how vulnerable they were to the current downturn. Most of those high up the list were not names that lend polish to an executive CV. But one was: sitting at number 20 was the London Business School.
LBS has benefited from a long boom in the business of business education and a good reputation. The Economist’s MBA ranking puts it 25th in the world last year. Those two factors allowed it to push up prices. Its Masters in Business Administration, which cost £50,000 in 2010, now sets students back £90,000 ($112,000).
LBS is unusual among British business schools in being a stand-alone entity. Most of its peers, such as the Said School at Oxford or the Judge School at Cambridge, are parts of larger institutions, which have tended to run their business schools as cash cows, subsiding less sought-after degrees. LBS has not needed to siphon off cash to support less lucrative educational products.
The staff have benefited. “It’s run like an investment bank”, says a faculty member. “The core asset is the people that work here and we take the upside.” In 2019, the school’s revenues came in at just over £160m, of which £80m paid for 830 staff. While academic pay has been broadly flat across British universities over the past decade, that has not been the case at LBS. Fifty staff members earn…