Do I Need An MBA to Be a CEO?

• Fifty-nine percent of North American CEOs hold an advanced degree.
• At the CEO level, job performance is more important than the type of degree you hold.
• MBA programs provide a broad business education, which is useful in leadership positions.
• There are a variety of different educational paths aspiring CEOs can follow.

Although the majority of CEOs are well-educated, an MBA is not a prerequisite for these roles. An analysis by Study.eu conducted in 2017 revealed that only 37% of North American CEOs held an MBA degree, although 59% had some type of advanced degree. Among Fortune 100 companies in 2019, 54% of CEOs held a graduate degree, and 59% of those graduate degrees were MBAs.

An MBA doesn't guarantee that you'll be better at running a company than a peer with another type of degree. In a study conducted by Institutional Investor, CEOs with MBAs performed no better than other CEOs when analyzing company stock price performance.

At the CEO level, what matters most is what you've accomplished throughout your career — not whether or not you have an MBA. Many CEOs founded their own companies or rose through the ranks without an MBA.

The potential benefits of an MBA to CEOs also depends on the size of their company and their specific industry. For example, you can be the CEO of your own tech firm without an MBA. And if you want to become the CEO of a bank or financial institution, you may be just as well off getting a master's degree in finance.

Why Get an MBA to Become a CEO?

Earning an MBA provides you with a well-rounded, advanced education in business. This education is helpful at companies that don't necessarily require a specific skill set related to the particular industry. To be a successful CEO of a company that operates in multiple product and service areas, you need a good understanding of all functional areas of business.

Pursuing an MBA degree can prove important for professionals with expertise in a specific discipline, such as finance, marketing, sales, technology, or operations. An accredited MBA program can round out your business skill set and provide you with an in-depth education in multiple business disciplines outside of your core area.

Although a master of business administration degree can help you achieve your dream of running a company, it's not the only educational path that you can take to get there. Decide for yourself if an MBA is right for you by reviewing some of the pros and cons listed below.

Pros of Getting an MBA to Become a CEO

Cons of Getting an MBA to Become a CEO

Alternatives to Getting an MBA

• Become certified in multiple business disciplines, such as finance, marketing, information technology, supply chain management, and/or business administration. The more certifications you have in different subject areas, the more valuable you can be to a company. There are multiple certification courses available online, including the certified manager credential offered by the Institute of Certified Professional Managers.
• Earn a certificate in business administration or business management through an accredited online graduate school.
• Pursue a master's degree in finance or another business area in which you lack expertise. This can help you round out your skill set.
• Take advantage of corporate training and development programs offered by your company. Doing so can help you become more familiar with company operations and demonstrate your dedication to your organization.

Frequently Asked Questions About Getting an MBA to Be a CEO

Reviewed by:

Krystal Covington, MBA

Krystal Covington, MBA, is a business growth strategist with 15 years of experience in marketing and public relations. Her company, Go Lead Consulting, provides clients foundational tools to build new client and customer relationships. Covington founded Women of Denver, one of the largest privately held membership organizations in Denver, Colorado. Her program helps women increase their business acumen, sharpen leadership skills and connect with other high-achieving women. Covington received her MBA from Western Governors University in 2012.

Krystal Covington is a paid member of the Red Ventures Education freelance review network.

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