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May 3, 2018

Executive Compensation at Harvard

by Anne Paddock

Harvard University (Harvard) is one of the most well-respected institutions of higher learning in the United States and consequently, a popular choice among prospective students. With a 5% acceptance rate (40,000 students apply annually and only about 2,000 are accepted), Harvard is also one of the most competitive undergraduate schools in the country even though the cost to attend is about $65,000 annually ($45,000 for tuition and $20,000 for room, board, and fees).

Harvard is a 501 (c) (3) whose legal name is President and Fellows of Harvard College.  There is also Harvard Management Company, Inc. (HMC) – a 501 (c) (3) – whose mission is to provide investment management services to Harvard (managing the $41.9 billion in net fund assets). Both of these organizations are key to understanding the financial aspects of what most people think of as “Harvard.”

Important key information about Harvard and HMC (based on the 2016 Form 990’s) are summarized as follows:

There are approximately 6,700 undergraduate students and about 15,250 graduate students for a total of 22,000.

Harvard reported having 37,684 employees whose total compensation was $2.194 billion which equates to an average compensation of about $58,000. However, 3,996 individuals received more than $100,000 in compensation with the most highly compensated individuals listed below:

  • $1,899,476:  Drew Gilpin Faust, President
  • $1,750,226:  Richard H Vietor, Faculty
  • $1,337,452:  John A Deighton, Faculty
  • $1,084,385:  David F Hawkins, Faculty
  • $1,061,342:  Elon Kohlberg, Faculty
  • $  867,080:  Alan M Garbar, Provost
  • $  758,732:  Nitin Nohria, Dean, Faculty of Business
  • $  711,175:   Michael D Smith, Dean, Faculty of Arts and Sciences
  • $  701,720:  Katherine N Lapp, EVP
  • $  678,712:  Jeffrey S Flier, Dean, Faculty of Medicine
  • $  659,614:  Roland Fryer, Faculty
  • $  597,535:  Robert W Iuliano, SVP and General Counsel, Deputy to the President
  • $  531,804:  Tamara Elliot Rogers, VP for Alumni Affairs and Development
  • $  477,135:  Steven E Hyman, Faculty, Former Provost
  • $  450,456:  Anne M Margulies, VP and Chief Information Officer
  • $  431,126:  Marilyn M Hausammann, VP for Human Resources
  • $  418,779:  Paul Andrew, VP, Public Affairs and Communication
  • $  417,010:  Marc L Goodheart, VP and Secretary of the University
  • $  399,671:  Meredith Weenick, VP for Campus Services
  • $  390,838:  Sarah E Thomas, VP for the Harvard Library
  • $  384,027:  Leah Rosovsky, VP for Strategy and Programs
  • $  346,911:  Thomas J Hollister, VP for Finance and CFO (began 5/15)
  • $  332,915:  Mark R Johnson, VP Capital Planning and Project Management (until 10/15)
  • $  283,941:  Christine M Heenan, Consultant, Former VP
  • $  166,873:  Karen Gordon Mills, Fellow, Senior Fellow at HBS

Of the 25 individuals listed above, 16 are men (64%) are men while 9 are women (36%).  Of the ten most highly compensated individuals, 9 are men while 1 is a woman (who ranks 9th on the list).

Harvard paid for first class or charter travel, travel for companions, housing allowance or residence for personal use, health or social club dues or initiation fees, personal services, and gross up payments and tax indemnification (for details click on the link below to go to the Form 990, Schedule J, Part III, Supplemental Information).

HMC reported having 370 employees whose total compensation was $137.6 million which equates to an average compensation of $372,000. 203 individuals received more than $100,000 in compensation with the most highly compensated individuals listed below:

  • $14,888,271:  Stephen J Blyth, President and CEO
  • $11,574,419:  Daniel Cummings, Real Estate
  • $11,440,272:  Andrew G Wiltshire, Head of Alternative Assets (until 10/9/15)
  • $ 5,851, 175:  Michele Toscani, Fixed Income
  • $ 4,881,116:  Marco Barrozo, Fixed Income (until 10/2/15)
  • $ 4,752,117:  Robert A Ettl, COO and Treasurer
  • $ 4,725,433:  Graig Fantuzzi, Fixed Income
  • $ 3,310,266:  Jiquing Xia, CRO
  • $ 1,322,848:  Kathryn I Murtagh, CCO and Clerk

Of the 9 individuals listed above, 7 (or 78%) are men while 2 (or 22%) are women. The organization pays for first class or charter travel. To read more detail about compensation, see Schedule J, Part III Supplemental Information of the Form 990 (link below).

To read the Harvard IRS Form 990 (2015 for the year beginning July 1, 2015 and ending June 30, 2016), click here.

To read the HMC IRS Form 990 (2015 for the year beginning July 1, 2015 and ending June 30, 2016), click here.

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