Executive Compensation at Harvard (2022)

Harvard is a private teaching and research university with an acceptance rate at about 5% of applicants.  Located in Boston, Massachusetts, Harvard has about 25,000 students (both undergraduate and graduate students). The annual tuition, room, board, and fees is about $85,000 which means a 4-year degree is about $340,000.

There are 13 voting members (Fellows) of the governing body, 10 of whom are independent, 8 of the 13 (62%) are male while 5 of the 13 (38%) are female.

In 2022, Harvard’s total revenue was $9.6 billion (compared to $9 billion in 2021 and $7 billion in 2020) with most of the income coming from 3 sources:  investment income, gains, and royalties ($5.2 billion), contributions, gifts, and grants ($2.3 billion) and tuition, fees, and services  ($1.8 billion).  Expenses were $5.4 billion (not including $403 million in depreciation).  At year-end, Harvard had $59 billion in net assets – a $2 billion decline over the previous year primarily due to $6 billion in unrealized losses on investments that were partially offset by the $4 billion in excess revenue over expenses in 2022.

On the IRS Form 990 (for the year ending June 30, 2022), Harvard reports $865 million in grants (about 9% of revenue), of which $679 million was awarded to domestic individuals, $158 million to domestic organizations, and $28 million to foreign organizations, governments, and individuals.  All of the grants awarded to individuals were cash grants ($597 million):

• $260 million was awarded to 9,810 graduate students for tuition and and fees (avg of $26,000)
• $226 million was awarded to 4,378 undergraduate  for tuition and fees (avg of $52,000)
• $102 million was awarded to 6,982 graduate students for stipends (avg of $5,000)
• $ 92 million was awarded to 9,841 students for various other reasons (avg of $9,000)

It is unclear why the number of students awarded grants (about 31,000) exceeds the total student population (25,000).

Harvard reported having 34,241 employees in 2022 who received total compensation of $2.6 billion  which equates to an average compensation of $76,000.   5,458 employees received more than $100,000 in compensation with the 28 most highly compensated individuals listed below:

• $1,597,747:  David J Malan, Faculty
• $1,330,200:  Lawrence S Bacow, Fellow/President
• $  982,658:  Srikant M Datar, Dean, Faculty of Business (as of 1/1/21)
• $  946,159:  Alan M Garber, Provost
• $  930,138:  George Q Daley, Dean, Faculty of Medicine
• $  879,079:  Claudine Gay, Dean, Faculty of Arts and Sciences
• $  858,425:  Vilangadu G Narayanan, Faculty
• $  850,794:  Bruce L Hay, Faculty
• $  847,878:  Brian Lee, VP for Alumni Affairs and Development
• $  833,393:  Janice Hammond, Faculty
• $  829,843:  Linda Hill, Faculty
• $  825,732:  Nitin Nohria, Dean, Faculty of Business (until 21/21/20)
• $  783,839:  Katherine N Lapp, EVP
• $  750,592:  Anne H Margulies, VP and CIO (until 5/31/21)
• $  692,957:  Marilyn M Hausammann VP for HR (until 5/31/21)
• $  679,096:  Diane Lopez, VP and General Counsel
• $  613,934:  Thomas J Hollister, VP for Finance and CFO
• $  560,413:  Paul Andrew, VP, Public Affairs and Communication
• $  560,250:  Michael D Smith, Faculty
• $  519,197:  Meredith Weenick, VP for Campus Services
• $  496,623:  Marc L Goodheart,  VP and Secretary of the University
• $  482,450:  Jeffrey S Flier, Faculty
• $  463,153:  Martha Whitehead, VP for the Harvard Library
• $  461,012:  Barbara J McNeil, Faculty
• $  446,303:  Drew Gilpin Faust, Faculty
• $  297,101:  Manuel Cuevas-Trisan, VP for HR (as of 8/2/21)
• $  226,166:  Klara Jelinkova, VP and CIO (as of 9/13/21)
• $  204,451:  Karen Gordon Mills, Fellow, Senior Fellow at HBS

A “*” indicates a portion of compensation came from a related/affiliated organization.

The 28 most highly compensated employees received $20 million in compensation.  16 of the 28 (57%) most highly compensated employees are male while 12 of the 28 (43%) are female.

The most highly compensated employee was David J Malan, a faculty member who received $1.6 million in compensation in 2022.  From 2019-2022, Mr Malan received $5 million in compensation:

• 2022:  $1,597,747
• 2021:  $1,412,660
• 2020:  $  975,840
• 2019:  $  947,205

Harvard paid for first class or charter travel, travel for companions, personal services, health or social club dues or initiation fees, and provided housing or a housing allowance, gross up payments or tax indemnification. To read more detail about these expenses and the non-qualified supplemental retirement plan, see the Form 990, Schedule J, Part III, Supplemental Information.

Harvard provided a $1 million loan to Drew Gilpin Faust , the former President, for the construction of a home. The balance due is $850,000.

Harvard provided a $1 million loan to Michael Smith, a former key employee, for the purchase of a home. The balance due is $831,000.

Harvard provided a $800,o00 loan to Manuel Cuevas-Trisan, an officer for the purchase of a home.  The balance due is $778,000.  In addition, Harvard provided Manuel Cuevas-Trisan a $600,000 loan for a bridge loan. The balance due is $600,000.

Harvard provided a $786,000 loan to Srikant Datar, a key employee for dependent education. The balance due is $29,000 (Note:  this disclosure did not appear on the Form 990, Schedule J in 2021).

Harvard provided a $350,000 loan to Claudine Gay, a key employee, to purchase a home. The balance due is $231,000.

Bharat Anand, a family member of Nitin Nohria, a former key employee, received $1,039,599 as compensation for employment.  Note:  Barat Anand is not listed above as one of the highly compensated employees.

Amy Edmondson, a family member of George Daley, a key employee, received $605,563 as compensation for employment (note: Amy Edmondson is not listed in the above as one of the highly compensated employees).

Soheyla Gharib, a family member of William F Lee, a fellow, received $435,986 as compensation for employment (note:  Soheyla Gharib is not listed above as one of the most highly compensated employees).

Richard T Lee, a family member of William F Lee, a fellow, received $367,482 as compensation for employment (note: Richard T Lee is not listed above as one of the most highly compensated employees).

Catherine Lee Smith, a family member of William F Lee, a fellow, received $224,709 as compensation for employment.

To read the IRS Form 990 (for the year ending June 30, 2022), click here.