Executive Compensation at University of Pennsylvania
The University of Pennsylvania (Penn) is a private research university in Philadelphia that is also a member of the Ivy League. With more than $12 billion in the school’s endowment, Penn also includes a hospital, five outpatient facilities, an in-patient rehabilitation center, and 10 research facilities.
The IRS Form 990 (2015) covering the year beginning July 1, 2015 and ending June 30, 2016 reports the following key information about Penn:
Penn receives approximately 45,000 applications annually and accepts about 8% (about 3,600), making the university one of the most selective schools in the country.
Tuition, room, and board totals about $70,000 annually which makes a 4-year education nearly $300,000. However, $403 million in financial aid was awarded to 14,404 students (or an average of $28,000 each).
Total revenue was $6.3 billion, including $1.3 billion in grants and contributions (of which $728 million came from the government), $2.6 billion from healthcare, $1.2 billion from tuition and fees, and $1.2 billion from auxiliary services and investment income.
Expenses totaled $5.6 billion (or $5.3 billion not including depreciation) of which $3.2 billion (or 60% of expenses) were for compensation-related costs for the 48,347 employees, which equates to an average of $67,000 each. The remaining expenses include $492 million in office expenses, $473 million in medical supplies, $417 million in fees for services, $408 million in grants (of which $403 million was for domestic students), $185 million in other expenses (i.e. interest expense, other taxes) , and $125 million in travel and conferences
Although Penn reports $644 million in revenue over expenses at year-end, the 990 also reports $660 million in net unrealized losses on investments and a $205 million downward adjustment in net fund assets primarily attributed to changes in pension and other post-retirement plans. Thus, net fund assets went from $12.5 billion at the beginning of the year to $12.3 billion at the end of the year (of which $6.6 billion remained unrestricted and $2.4 billion was temporarily restricted, leaving $3.3 billion permanently restricted.
6,380 individuals received more than $100,000 in compensation.
The IRS Form 990 reports Penn paid for first class or charter travel, travel for companions, participated in tax indemnification and gross up payments, provided housing allowances or residence for personal use, paid for health or social club dues or initiation fees, and paid for personal services (i.e. maid chauffeur, maid, chef, etc).
The 41 most highly compensated individuals were reported to be:
- $4,822,512: Thomas Beeman, COO Regional Operations UPHS (Note: paid by a related organization)
- $3,537,020: Dr. Amy Gutman, President, Ex-Officio, Trustee
- $2,756,698: Larry Jameson, EVP UPHS and Dean of PSOM
- $2,622,630: Ralph Muller, CEO UPHS
- $1,992,782: Thomas L Spray, MD, CHOP Surgeon
- $1,951,261: Michael Sean Grady, MD Surgeon, Otorhinolaryngology
- $1,751,381: Peter Ammon, Chief Investment Officer
- $1,730,564: William C Welch, MD, Neurosurgeon
- $1,669,986: Garry L Scheib, COO, UPHS
- $1,664,227: Paul Marcotte, MD, Neurosurgeon
- $1,612,634: Scott Adzick, MD, CHOP, Surgeon
- $1,502,742: Peter D Quinn, MD, DMD, SVP, Vice Dean Prof Services, UPHS
- $1,487,450: Kevin Mahoney, EVP Program Development, Executive Vice Dean
- $1,464,236: Craig Carnaroli, EVP
- $1,401,286: Keith Kasper, CFO, UPHS
- $1,239,204: Vincent Price, Provost
- $1,169,574: Elizabeth B Johnston, Executive Director, CPUP
- $1,131,179: Phillip Okala, SVP Business Development, UPHS
- $ 865,001: Patrick Brennan, MD, SVP and Chief Medical Officer
- $ 857,402: Jon Epstein, Dean PSOM
- $ 829,960: Wendy White, SVP and General Counsel
- $ 766,510: John Zeller, VP Development and Alumni Relations
- $ 761,669: Gail Morrison, Vice Dean, Education PSOM
- $ 663,598: Rebecca Cooke, VP Admin PSOM (thru 6/16)
- $ 593,737: Gregory Rost, VP and Chief of Staff
- $ 573,576: Thomas Murphy, VP Info Systems and Computing
- $ 529,078: Stephen Golding, VP Finance and Treasurer (thru 2/16)
- $ 520,621: Anne Papageorge, VP Facilities and Real Estate
- $ 514,975: Stephen J McCarthy, VP Communications
- $ 504,004: Arthur Rubenstein, Former EVP and Dean of PSOM
- $ 482,999: John Heuer, VP Human Resources
- $ 447,466: Joann Mitchell, VP Institutional Affairs
- $ 446,335: Bonnie Gibson, VP Budget and Management Analysis
- $ 434,986: Jeffrey Cooper, VP Government and Community Relations
- $ 431,735: Dawn Bonnell, Vice Provost for Research
- $ 408,116: Maureen Rush, VP Public Safety
- $ 404,759: Marie Witt, VP Business Services
- $ 398,699: Leslie Kruhly, VP and Secretary
- $ 337,170: John Horn, Comptroller
- $ 335,504: Beth A Winkelstein, Vice Provost for Education
- $ 292,345: Andrew Binns, Associate Provost
The list above reveals that of the 40 most highly compensated individuals directly compensated by Penn, 27 (or 68%) are male while 13 (or 32%) are female. Of the ten most highly compensated individuals, 9 are male and 1 (the President and most highly compensated individual) is female. Of the 20 most highly compensated individuals, 17 (85%) are male and 3 (15%) are female. Of the 20 at the bottom of the list, 10 are male while 10 are female.
Loans to interested persons include:
- Amy Gutmann, President: Loan in amount of $1,250,000 for recruitment/retention; Balance due is $1,000,000
- Eric J Furda, Dean: Loan in amount of $150,000 for recruitment/retention; Balance due is $150,000
- Geoffrey M Garrett, Dean: Loan in amount of $150,000 for recruitment/retention; Balance due is $126,786
- Pamela Grossman, Dean: Loan in amount of $150,000 for recruitment/retention; Balance due is $131,667
- Rvijay Kumar, Dean: Loan in amount of $500,000 for recruitment/retention; Balance due is $500,000
- Antonia M Villarruel, Dean: Loan in amount of $500,000 for recruitment/retention; Balance due is $130,357
It is unclear if the loans were paid back or a portion was and continues to be forgiven over time while employed by Penn.
To read the IRS Form 990, click here.