Two managers of Harvard University’s endowment fund raked in about $35 million each last year for overseeing investments for the school’s $19.3 billion all-purpose trove that funds everything fromstudent loans to faculty salaries.<\/p>\n
The multimillion-dollar payouts were about double last year’s pay for the two managers, a report yesterday from Harvard Management Co. shows. The firm invests endowment funds.<\/p>\n
Maurice Samuels, manager of the foreign fixed-income fund, was paid $35.1 million for the fiscal year ended June 30, more than double his $15.9 million take a year earlier. David Mittleton, manager of the domestic fixed-income fund, got $34.1 million, almost double last year’s $17.5 million.<\/p>\n
Jack Meyer, chief executive of Harvard Management, a subsidiary of the university, defended the huge payouts as comparable to what other money managers with equal investment success are paid.<\/p>\n
He noted that the four portfolios overseen by the five top-paid managers at Harvard Management had spectacular returns – one reaching 52 percent last year alone – and have netted the endowmment $2.5 billion in gains over the past five years.<\/p>\n
Bonuses are tied to fund performance against benchmark goals agreed upon by endowment directors, Meyer stressed.<\/p>\n
“They had a terrific year,” said Meyer, who himself was paid $6.9 million last fiscal year, up from $5.8 million the year prior.<\/p>\n
The overall endowment had a 12.5 percent return last fiscal year – topping nearly all other college endowments, by some estimates.<\/p>\n
But huge payouts in recent years have drawn criticism at Harvard, the most recent from alumni.<\/p>\n
Alex Thomson, a financial executive recruiter with Russell Reynolds Associates, said the latest figures are huge indeed.<\/p>\n
“By any measure, those numbers are high in the investment management business,” he said. “But, conversely, Jack and his team have delivered results over the year, so I have a hard time arguing with” the compensation levels.<\/p>\n","protected":false},"excerpt":{"rendered":"
Two managers of Harvard University’s endowment fund raked in about $35 million each last year for overseeing investments for the school’s $19.3 billion all-purpose trove that funds everything fromstudent loans to faculty salaries. The multimillion-dollar payouts were about double last […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2220","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/2220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=2220"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/2220\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=2220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=2220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=2220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}