Indian B-Schools to Report Maximum Earning Potential Instead of CTC

19 Jun 11: All the business schools in the country used to state Cost to Company in all their placement reports. But now to maintain transparency in reporting salary components in placements, IIM-A (Ahmedabad), has decided to report maximum earning potential in their placement reports, instead of cost-to-company (CTC), as it gave a wrong picture to the students. CTC also does not specify guaranteed cash components and gives wrong information of variable components.

Therefore, the participants of the business schools have agreed to replace the concept of CTC with MEP. Maximum Earning Potential (MEP) will specify details regarding cash, non-cash and other variable components. This decision came as a result of revision of Placement Reporting Standards in IIM-A, which is yet to be approved by its members.

In order not to mislead the IIM aspirants, MEP along with guaranteed cash components is sufficient enough to provide correct and sufficient information. On a side note, business schools all over the world, like Harvard, Stanford, Wharton and MIT Sloan follow the standard reporting format ‘MBA CSC Standards for Reporting Employment Data’.

Source: Times of India