Is it true that almost 90% of IIM graduates who start their career in the field of business consulting and investment banking easily earn more than 100 LPAs in India after 5 years of completing their MBA?

Updated on : December 3, 2021 by Amber Murray



Is it true that almost 90% of IIM graduates who start their career in the field of business consulting and investment banking easily earn more than 100 LPAs in India after 5 years of completing their MBA?

I don't think that after 5 years of experience, an MBA graduate can easily earn 100 LPA, which is equivalent to INR 1 crore per year, even if they have passed out from IIM.

It can be 10% of IIM MBA graduate and other MBA graduate from prestigious Indian institute who are working in India with 5 years experience and could earn 1 crore per year if they have extraordinary ability.

If they migrate abroad to work, they can easily earn a salary package of 1 crore or more than 1 crore for a year.

Public accountants with more than 10 years of experience who have worked in large corporate companies are earning 1 crore pe

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I don't think that after 5 years of experience, an MBA graduate can easily earn 100 LPA, which is equivalent to INR 1 crore per year, even if they have passed out from IIM.

It can be 10% of IIM MBA graduate and other MBA graduate from prestigious Indian institute who are working in India with 5 years experience and could earn 1 crore per year if they have extraordinary ability.

If they migrate abroad to work, they can easily earn a salary package of 1 crore or more than 1 crore for a year.

Chartered accountants with more than 10 years of experience who have worked in large corporate companies earn 1 crore per year or more as of today. Becoming Chartered Accountants in India is much more difficult compared to passing an MBA from IIM or any prestigious institute in India

Initially, they can get 20 to 30 lakhs per year. After that, getting double the salary is difficult even for 2-3 years. So it is impossible to get 100LPA. The exceptions are always there, but I'm not sure I get 100LPA.

Most of them jam below 40 lpa. It is a myth. Also, in the hand it is much smaller, since most of its bonus is tied.

This year the IIM Calcutta one-year program graduate earned a 1.25 crore bundle of which 80% is a cash component

It's not just the top 20% that get that.

I'm not sure if that's true. However, after the PAYG system, our country has created another division called IIM and Non IIM / IIT or Non IIT.

I attended XLRI (2018) for my MBA in Business Administration and my husband attended IIMA (2017).

As for your question, there is only one way to know the salary available, that is, by looking at the offer letter and the breakdown of a certain recruiter. But if I were to generalize, I would say that a net CTC of 25 lacs per year would translate into a fixed recurrence of 16-19 lpa for most recruiters. The rest would normally be offered as a combination of performance linked pay, employee stock options, one-time retention bonus to be paid after a few years, etc.

A recurring fixed compensation of 16–

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I attended XLRI (2018) for my MBA in Business Administration and my husband attended IIMA (2017).

As for your question, there is only one way to know the salary available, that is, by looking at the offer letter and the breakdown of a certain recruiter. But if I were to generalize, I would say that a net CTC of 25 lacs per year would translate into a fixed recurrence of 16-19 lpa for most recruiters. The rest would normally be offered as a combination of performance linked pay, employee stock options, one-time retention bonus to be paid after a few years, etc.

A recurring fixed compensation of 16-19 lpa will translate into a net salary of 100 to 135,000, depending on your tax deductions. With another 1-3 lacs as an annual bonus.

Please note that this is speculative and the actual compensation and your savings will be more affected by employer policies. For instance-

  1. Some employers offer housing and as a result do not pay for the HRA component, and some recruiters do not. This could be an additional reduction of 25k per month.
  2. Some employers choose to pay the full variable salary, and some may pay less than half.
  3. Some employers will put you up in 5-star hotels and take you business class, and some recruiters will reimburse Rs 1000 per day and tell you to manage your stay on your own. In that case, you will surely end up spending out of your own pocket.

Also, if your position is in Mumbai, you will spend more money on rent compared to your peers in Bangalore or elsewhere.

I have come across one or two aspiring employers who inflate their CTC to incredible numbers (35 lpa or more) to attract top talent or land an earlier placement position. The CTC could be inflated with components that are one-time payments or that become payable after the candidate spends a few years with employers. Or they could be non-cash-based stock options.

On the other hand, the best recruiters in their class will generally offer a very high fixed compensation (more than 20 lpa) and will reimburse most of your other expenses. A few years with them will also open many doors later in the candidate's career. These employers are worth it.

Edit: I saw some posts and comments and I feel like my post is being misinterpreted. Some clarifications

  1. In each placement season, a small number of employers will offer inflated CTCs. This does not mean that the entire XLRI / IIM placement system is a scam. No, far from it.
  2. One-time payments and payment expenses are also good income. They are offered with the intention of reducing wear. Although, its usefulness depends on the exact nature of the offer.
  3. As one progresses in a managerial career, an increasing amount of compensation will be earned through bonuses and awards. No employer or promoter group will offer a 100% recurring fixed component in the CTC. For CXOs, the fixed compensation percentage is as low as 25%.

There are a lot of wages that a person can earn. I passed out from IIM Indore in 2016. I have already completed 5 years of work after IIM. Currently, just for my group of close friends, the salary ranges are from 15 lakhs to 38lakhs.

It all depends on where you work, how your industry performs, how you change, and how your salary grows.
There are people who passed out in 2016 from MBA level III colleges and are currently earning as much as or more than some of my friends from IIM I.
There are people who do not want to look for private sector jobs and move to PSU ( I did)

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There are a lot of wages that a person can earn. I passed out from IIM Indore in 2016. I have already completed 5 years of work after IIM. Currently, just for my group of close friends, the salary ranges are from 15 lakhs to 38lakhs.

It all depends on where you work, how your industry performs, how you change, and how your salary grows.
There are people who passed out in 2016 from MBA level III colleges and are currently earning as much as or more than some of my friends from IIM I.
There are people who do not want to look for private sector jobs and move to PSU ( I did) or go to UPSC (some of my post-MBA colleagues have gone there). Its growth is slow. Again few people quickly change companies, move to startups or other fast moving companies and I have a friend of 8 years in the industry after an IIM I MBA who is earning in his 40s today.

Therefore, there is no fixed answer to what you are asking. The following factors decide your salary

  1. Your Starting Salary - The impact is low, as you can easily move on to higher paying companies.
  2. Industry Growth - If the industry you work in grows rapidly, your salary will increase rapidly. I worked in print media and my salary growth was less than 3% per year as it was a very slow industry.
  3. Company change: People change companies either to improve their salary or to improve their job functions, or to change their industry or to have growth. Not necessarily everything happens together. If you go for growth and make a change maybe once every 3 years, you have changed 3 after 3 years. That gives you very good growth. If the changes are due to different reasons, you may or may not have a salary increase.

I will give 3 real life examples here. There was a girl who had graduated in 2016 from a level III MBA university. He used to inform me.

He earned 30 thousand a month. He changed jobs twice and it went up to almost 1 lakh per month in 2 years. She publishes that the pressure of work affected her and she switched to a job that earned around 50 thousand a month and worked constantly there for the last 2 years. Completed 5 years of work.

Another example, one of my classmates received an offer of 60k per month from IIM Indore. He changed twice and is now in his third company. He earns 1.5 thousand rupees a month. Completed 5 years of work.

Another guy started with 90k a month approx. Changed twice. He currently earns around 2.2lakhs a month roughly. Completed 5 years of work.

So you can see that there are a wide variety of salaries that can be there. That said, the main thing that happens to MOST IIM students is that they get a broad perspective on how a business is run and how they can make good decisions. This leads them to get good growths and therefore they can have a nice raise in salary if necessary.

On average 20-40 lakhs per year

Naukri Facts

10 years of experience:

MBA jobs across India

in 20 lakh package: 1595

In a 40 lakh package: 174

At 1 crore: 10 jobs

Even if we say that IIM elects the majority, it will be in 20-40 Lakhs. Don't dream that you just cracked IIM and you will get a payment package of over 50 lakhs easily.

I was part of the normalization process.

At 10 years of experience; An MBA graduate is an MBA graduate, it will not matter if it is from the IIM or from a local institute. The gap is very thin. For example, I compete for many jobs where the best candidates from school B are preferred. But I always write down the interview because they require

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On average 20-40 lakhs per year

Naukri Facts

10 years of experience:

MBA jobs across India

in 20 lakh package: 1595

In a 40 lakh package: 174

At 1 crore: 10 jobs

Even if we say that IIM elects the majority, it will be in 20-40 Lakhs. Don't dream that you just cracked IIM and you will get a payment package of over 50 lakhs easily.

I was part of the normalization process.

At 10 years of experience; An MBA graduate is an MBA graduate, it will not matter if it is from the IIM or from a local institute. The gap is very thin. For example, I compete for many jobs where the best candidates from school B are preferred. But I always rate the interview because they require subject matter Expert experience. Therefore, there are very few specific jobs from the best B schools after 10 years of experience.

In an average of 10 years, an MBA graduate has the potential to earn between 20 and 40 lakhs. Now if you are in Sales, Sky is the limit.

Calculation and appraisal are never linear. So don't think that if someone starts with 15 LPA they will reach 1 crore.

The 50+ lakhs package is treated as an impossible package and will be given to those who contribute directly to the organization. That means who raises their own money.

Here is the approximate annual calculation

IIM: 15

MBA: 5

After 5 years

IIM: 25

MBA: 13

After that, 2 lakhs per year for IIM and 1.5 lakhs for MBA

IIM: 35

MBA: 20.5

Hence the 20-40 LPA range if all goes well, which is rare.

Update: These facts and figures are in total real practical terms and occur in 90% of cases. Yes, if you are following the newspaper or someone gossiping about millions of pay packages, I can't help you.

You will be surprised to know that they (IIM) may also find it difficult to change jobs due to high expectations.

So all the advantages of coming from the best institute are a starter. The increments work on the normalization curve, so if you get 10% at 15 LPA, it doesn't mean that you will get 4 lakhs at 40 LPA.

I interviewed over 10 years of experience from IIM and other MBAs and treated them equally, even in paid packages.

Well, rich kids who go to IIM and IIT have never seen pain before going to IIM and IIT. These kids see such stress of life all of a sudden for the first time only when they go to college. That is why they feel that this IIT-IIM pressure is something so extraordinary that others have not seen. On average, these IIT-IIM children have not had emotional or financial problems. When these children are raised in such overprotective cocoon environments, they do not see the outside world and misinterpret IIT as "the only pressure," which is why IIT and IIM are overrated.

Yes, I have seen many non-IIT students

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Well, rich kids who go to IIM and IIT have never seen pain before going to IIM and IIT. These kids see such stress of life all of a sudden for the first time only when they go to college. That is why they feel that this IIT-IIM pressure is something so extraordinary that others have not seen. On average, these IIT-IIM children have not had emotional or financial problems. When these children are raised in such overprotective cocoon environments, they do not see the outside world and misinterpret IIT as "the only pressure," which is why IIT and IIM are overrated.

Yes, I have seen many non-IIT students who have so much practical, hands-on knowledge and skills that they beat IIT graduates quite easily. A reinforced ego with excessive narcissistic traits as a psychological defense mechanism to cover up pressure is a common thing that I have found in many IIT-IIM graduates. Your ego creates all kinds of "bad attitude" and "people problems" within the office.

In contrast to that, I have seen many smart people from non-IIT and non-IIM colleges who have minor "bad attitude" issues in the office. They were unlucky in many aspects of life, so they easily go through the required routine with immense determination to create results. And yes, less ego means better customers. I haven't seen Italians do all the dirty work because of their white-collar ego. These IIT citizens don't want to get their hands dirty. The “white collar” attitude of this IIT-IIM has been counterproductive for many companies. I have also seen this happen to my companies.

Now, to overcome the geek image, many IIT citizens do not study or promote themselves like crazy on social media by getting involved in other activities. Typical defense mechanism. However, they are still the same practically foolish people. It's no wonder that our parents, who never studied at any IIT, know more about life and the business world than these overblown kids.

Sorry for the harsh reality. But it is not what it seems.

I am a man with a history from poverty to wealth. Being an NRI, I have seen many people throughout my life. During my journey as a multi-action leader, I have recruited many and had to fire many. Experience counts. And trust my life experience, no IIT-IIM motto is enough to provide quality work. Many of these IIM graduates have disappointed me with their style.

If you have had a good eye for talent, you will choose those who deserve it even without the IIM-IIT slogans. I always believed that I could pick the right guys for my industry. So I always sat down for hires. And boy, is it fun.

IIM placements are generally made between December and February of each year for the PGP batch. The average salary package offered to candidates from the top IIMs ranges from Rs 20-25 lakhs per year, while the salary packages for the newer IIMs fall between Rs 10-20 lakhs per year. Highest salary offer in top IIMs: A, B, C has seen Rs 70 lakh being offered to Rs 1 crore as CTC. The international salary packages on offer are Rs 60 lakh and up.

Major companies such as E&Y, Deloitte, Walmart, Accenture, JP Morgan Chase, Barclays, Morgan Stanley, Tolaram, Squareyards & Protiviti, EXL, KPMG, HSBC, Goldman Sachs, Ama

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IIM placements are generally made between December and February of each year for the PGP batch. The average salary package offered to candidates from the top IIMs ranges from Rs 20-25 lakhs per year, while the salary packages for the newer IIMs fall between Rs 10-20 lakhs per year. Highest salary offer in top IIMs: A, B, C has seen Rs 70 lakh being offered to Rs 1 crore as CTC. The international salary packages on offer are Rs 60 lakh and up.

Major companies such as E&Y, Deloitte, Walmart, Accenture, JP Morgan Chase, Barclays, Morgan Stanley, Tolaram, Squareyards & Protiviti, EXL, KPMG, HSBC, Goldman Sachs, Amazon, Zomato, ICICI Bank, Bajaj, Axis, Tata, WIPRO, etc. visiting the IIM campuses for the recruitment of management graduates in various positions.

PGP / MBA graduates are offered various managerial roles in different sectors and domains. In terms of functions, most of the offers are made for positions such as Consultant and Managers.

The placement process at IIM comprises three main activities, namely Summer, Lateral, and Final Placement.

Summer Placements: Summer placements are organized for companies to recruit students for internships in April-May. This also helps build a platform to receive pre-placement offers (PPOs). Summer placements occur for 4-5 days in the month of March. This process is guided by an elaborate set of rules for both students and recruiters.

Lateral Placements: Lateral placements in IIM take place a couple of months before final placements, which 2-year PGP students with work experience (18 months and over) can participate in.

Final Placements: The final placement process that takes place in February-March is almost similar across all IIMs, except for a few minor deviations here and there. For example, IIM Ahmedabad follows the cohort-based system, rather than the day-based system. The cohort-based system allows recruiters to evaluate students over a longer period of time.

Client relations, consulting, business planning, resource or systems analysis may be part of your job profile, but let's take a more specific view of job opportunities after an IIM MBA:

  1. Banking and Finance - This includes investment and security analysis and portfolio management. These jobs, available at banks, security firms, insurance companies, and various financial organizations, require a professional to make the right investment decisions. Related job profiles are found in Corporate Treasury, Business Operations, and Credit Analysis. These jobs are usually offered by companies like Goldman Sachs, JP Morgan, Nomura, RBS, Barclays, etc.
  2. Commercial Banking: Other job opportunities at banks are for Commercial Banking, Liability Product Management, Card Management, Transaction Banking, Corporate Banking, Compliance, Wholesale Risk, Credit Risk, Relationship Management and Treasury. Banks such as ICICI Bank, Yes Bank, Kotak Bank, Axis Bank, State Bank of India, HDFC Bank, and RBL hire MBA graduates for these roles.
  3. Information Systems Management - This requires a more technology-focused candidate, someone with an MBA in information systems, or an MBA with an engineering background. Such candidates identify new and updated technologies to better serve an organization. They provide a comprehensive cost analysis for the use of the appropriate technology while working with the financial and administrative departments.
  4. Investment Banking - This is a job in demand. Companies hiring for this position include SBI Capital Markets, Motilal Oswal & Bank of America Continuum, among many others. The right candidate works as an insurer. You have to connect investors with organizations that need funds. The candidate must have the acumen to analyze what suits the client best. They deal with acquisitions and mergers, as well as clients. Other job profiles include Treasury, Securities and Investments.
  5. Management Consulting: If you are a problem solver, this is the job that suits you best. A management consultant specifically solves organizational problems, while embracing new ideas and new problem-solving methods. Companies hiring for these roles include Cognizant Business Consulting, Bain (BCC), KPMG, PwC, Infosys Management Consulting, Michael Page, Deloitte, PeopleStrong, Cartesian Consulting, and many more.
  6. Private Equity - Like investment banking, your investing acumen kicks in in a private equity job profile. The companies they hire are Religare, Magma Fincorp, DE Shaw, Indiabulls Housing Finance, Kotak Life, Angel Broking, ICICI Prudential Asset Management, Bajaj Finserv, Kotak Wealth Management, JPMorgan Chase, Axis Securities, Fidelity Investments, Fullerton, etc.
  7. Data analytics: With the digital revolution, making sense of "big data" is becoming increasingly important for all types of businesses, be they banking, retail, e-commerce or management. As a result, many business schools have started offering data analytics as an important part of their MBA programs. Companies like Fractal Analytics, LatentView Analytics hire MBA graduates as data scientists or data analysts.

Hope it helps you, thank you.

In the group, 20-25 lacquers per year.

I am answering the question from the point of "realism" which I value very much, so it may not be to the taste of many, but the truth be told. Money is important and I want to earn more.

Happiness cannot be attributed to 'money', but having said that, I would say that it is one of the currencies that can get you 'all' things.

The key word is "Everyone" and I mean it.

There is such strong financial backing behind human decisions that even though 'Naysayers' theorize it is 'No', you can cut their hypocrisy if you keep your sanity with you and have a rational perspective. Irratio

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In the group, 20-25 lacquers per year.

I am answering the question from the point of "realism" which I value very much, so it may not be to the taste of many, but the truth be told. Money is important and I want to earn more.

Happiness cannot be attributed to 'money', but having said that, I would say that it is one of the currencies that can get you 'all' things.

The key word is "Everyone" and I mean it.

There is such strong financial backing behind human decisions that even though 'Naysayers' theorize it is 'No', you can cut their hypocrisy if you keep your sanity with you and have a rational perspective. Irrational theories raised by people to defend their decisions that are too blatant and too clear to be seen with the naked eye.

Humans are irrational beings perceived as "rational". Most decisions are guided by feelings that gain affiliation 💰. In any case, with 💰 on your side, my friend, you will always be well placed. Life will always serve you 'sweet' juice.

So I'm not happy. Period!

I wanted and always want to make an offer that 'they' can never refuse and 'Money' is a coin, my friend.

There are also other currencies. Unrelated, but I must deliberate on that as well, if I have a chance 😀

  • Social status: this can be achieved with 'Money'. Ever visited someone else's house (let's say a potential girl) on Uber compared to your own Land Rover, you get treated differently. Rishta wapis ho sakta hai😆
  • Service: I find many on Quora and other social platforms deifying UPSC walas and so on. Sometimes Aisa lagta hai, selection aur shaadi dusre ka nahi, inka hua hai and even celebrating their rishte in service. Haha, I can't keep quiet, but for me they are: marriage of convenience or saying 'Trophy' Vivah. For people who celebrate, become a life and work hard, that can help you get better things. Such actions are defended on the basis that both individuals have the same wavelength and blah blah. But, give it a rational thought and you will see the hypocrisy. 'Love' flourished, but after Selection.
  • Same Profession - 🤣 A related and in continuation of the above, Doctors, Lawyers, Judges, MBA and you can add. Bhai, someone should help me understand the 'wavelength' theory if such a thing exists. 😂

And let me justify things by example, an IAS / Physician is immune to something called 'Love' if it is from a person who falls at the lowest level of the social hierarchy. It will not be illogical to call the so-called 'Love' as 'Faraib'

Another, an IAS who marries Medico and receives no dowry. Are you crazy? Shouldn't he marry one from the local village, a socially backward girl? So I think it would be appropriate to say 'dowryless' marriage. What an absurd action! He just collected 'currency in kind'

Physicians looking for wavelength because they have the 'hospital' / nursing home in mind. Being a doctor is a precondition for love to happen. Another form of melodrama and precondition 😆

What hypocrisy! but I like those hypotheses and theories. Just what is needed is to develop a taste for it.

If you fired a few or many, I don't apologize. Period!

Enjoy!

Edit -

  • The answer is a satirical reflection on contemporary things, in particular 'marriage' and the more important and sickly 'diefication' of UPSC walas. Colonial mentality. Get up! Begaani shaadi mein naacho toh naachte raho. Raita mat failayo.
  • Marriage of Convenience / Vivah Trophy - A freshly coined word, a good intellectual effort.
  • I'm not venting - Angoor khatte hain. Well I would differ by saying 'Where are the Angoors in the first place?
  • If it flared up, it was his firm intention that one would reflect on actions and take control of things. If it still persists, get a Burnol
  • Like / Upvotes is another form of currency. Some charge it by turning Quora into another Instagram identifier. Shawl raha hai photoshoot - Quora par! So, read and reflect. 😆

Actually! Instead of trying to spend too much time trying to justify my answer, I'll tell you how to calculate for yourself.

  1. First, calculate how many people graduate from IIM each year and how many total graduates are on the market.
  2. Next, calculate the total number of IIM graduates who have completed or are completing 5 years.
  3. Next, find 95% of the number you got in step 2.
  4. Now you need to research how many people in India earn a salary above Rs 2.0 crore per year. As far as I know, about 20,000 people in total get between Rs 1.0 million and Rs 5.0 million. You can deduce how many exceed
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Actually! Instead of trying to spend too much time trying to justify my answer, I'll tell you how to calculate for yourself.

  1. First, calculate how many people graduate from IIM each year and how many total graduates are on the market.
  2. Next, calculate the total number of IIM graduates who have completed or are completing 5 years.
  3. Next, find 95% of the number you got in step 2.
  4. Now you need to research how many people in India earn a salary above Rs 2.0 crore per year. As far as I know, about 20,000 people in total get between Rs 1.0 million and Rs 5.0 million. You can deduce how many exceed Rs 2.0 crore per year.
  5. Even if all the people who exceed Rs 2.0 crore are IIM graduates, they are definitely much less in number than the total number of IIM graduates with more than 5 years of experience.

It may also be a good idea to find out how many CEOs / CEOs in India are young enough to have completed only 5 years in a job. Ignore those who are sons or daughters of the promoters of the company because they all have American titles anyway.

The fact is that probably not a single IIM graduate will become CEO / MD of a company within 5 years of graduation and very few achieve a Rs 2.0 crore package in their entire lifetime. In just 5 years, even those working abroad do not easily reach Rs 2.0 crore or roughly USD 300,000 per year. Harvard is the number one business school in the world and very few Harvard MBAs earn $ 300,000 within 5 years of graduation.

Come on man!

I don't understand why half of the comments on most of these answers question the suggested salary figures.

I came out of one of the top 3 IIMs, a couple of years ago, and I am gaining 26 lpa (22 fixed rest variables, which all "average and beyond" employees get) and I have 12 lacs of ESOP.

All this, without any promotion and only 1 change, which offered a small increase.

Also, it was nowhere in the top 20%, not even in the top 30% of the lot, either academically or in terms of campus location numbers.

So I can safely assume that even if I make less than a couple of changes to t

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Come on man!

I don't understand why half of the comments on most of these answers question the suggested salary figures.

I came out of one of the top 3 IIMs, a couple of years ago, and I am gaining 26 lpa (22 fixed rest variables, which all "average and beyond" employees get) and I have 12 lacs of ESOP.

All this, without any promotion and only 1 change, which offered a small increase.

Also, it was nowhere in the top 20%, not even in the top 30% of the lot, either academically or in terms of campus location numbers.

So I can safely assume that even if I make less than a couple of changes in the next 10 years, an average. The annual walk (including promo ones etc) would get me past the 1 Cr mark, easily.

That is about me. Think of those people in the top 30%, whose high initial numbers would definitely rise much faster.

Therefore, a request to the readers: stop under calculating the salary of IIM graduates. I see that people first try to under-index their wages, and when they realize that they are making good money, then they begin to reprimand their work by questioning their work-life balance, than by an average. a graduate like me is pretty decent I would say.

And I don't speak for my lot, but I find a good no. from my fellow lot friends, earning similar salaries with a similar work-life balance.

Perhaps, we can talk more about the significance of our work, rather than compensation, which loses its charm, after a certain point, in your entrepreneurial career.

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