Executive Compensation at Brown University (2022)

Brown University is a private research university with about 11,000 students (7,000 undergrads and 4,000 graduate and medical students) in Providence, Rhode Island.  Unbeknownst to some is that Brown has 34 Division 1 sports teams.

Approximately 50,000 undergraduate students apply annually; 5% or 2,500 are accepted.  Annual tuition, room and board is $90,000 or about $360,000 for a 4-year degree.

When analyzing colleges and universities generally, there are 6 key numbers to look at:

• Revenue:  In 2022, Brown reported total revenue of $1.8 billion;
• Tuition and Fees:  In 2022, Brown reported $667 million in tuition and fees;
• Expenses:  In 2022, Brown reported total expenses of $1.4 billion (including $86 million in depreciation);
• Grants:  In 2022, Brown reported giving $357 million in grants to students;
• Net Income:  Brown reported net income of $400 million in 2022; and
• Net Assets:  In 2022 Brown reported net assets of $8 billion.

In other words, Brown took in sufficient income to cover all expenses and make $400 million in 2022. If you zero in on tuition and fees and grants, it is interesting to note Brown took in $667 million in tuition and fees and made cash grants of $357 million (54% of tuition and fees) to students unable to pay full tuition.  With $8 billion in net assets, Brown could reduce tuition considerably so that full pay students are not subsidizing other student tuition and still be a profitable high education research university.

When analyzing compensation at colleges and universities, there are 8 key items to look at:

• Total Number of Employees:  Brown reported having 11,804 employees in 2022;
• Total Number of Employees Receiving More Than $100,000:  Brown reported 1,481 employees received more than $100,000 in compensation;
• Total Compensation:  Brown reported $601 million was paid in compensation;
• Highly Compensated Employees:  17 employees were reported to be highly compensated (see below):
• Did the school pay for first class or charter travel, travel for companions, health or social club dues or initiation fees, personal services, a personal residence or a housing allowance, discretionary spending accounts gross up payments of tax indemnification, or payments for business use of personal residence:  Brown reported paying for a personal residence or providing a housing allowance, personal services, and making gross up payments or tax indemnifications;
• Personal loans to employees:  Brown reported making one loan to a key employee, Richard Locke for $300,000 for personal reasons; the balance due is $100,000;
• Most highly compensated independent contractors and how much did they receive: 506 independent contractors received more than $100,000 in compensation (the 5 highest are listed below) and
• Supplemental Retirement Plans:  Brown does participate in supplemental retirement plans (see the Form 990, Schedule J, Part III Supplemental Information for details).

11,804 employees received $601 million in compensation, or an average of $51,000.  1,481 employees received more than $100,000 in compensation with the 17 most highly compensated reported to be:

• $2,996,245:  Jane Dietze, VP and Chief Investment Officer
• $2,046,296:  Christina Paxson, President/Fellow
• $1,218,173:  Joshua T Kennedy, Managing Director
• $1,012,199:  Jack Elias, SVP, Health Affairs
• $  983,172:  Sergio Gonzalez, SVP, Advancement
• $  969,173:  Peter Levine, Managing Director
• $  931,475:  Barbara Chernow, EVP, Finance and Admin
• $  917,975:  Erica Nourjian, Head of Operations – Investments
• $  917,204:  Richard Locke, Provost
• $  743,828:  Louis Rice, Chair, Medicine
• $  634,884:  William Cioffi,  Professor, Medical Science
• $  571,833:  Russell Carey, Interim EVP, Finance (as of 10/21)
• $  506,492:  Kevin McLaughlin, Dean of Faculty
• $  470,027:  Michael White, CFO and President, Finance
• $  429,313:  Jill Pipher, VP, Research
• $  405,298:  Michael Gugliemo, VP, Facilities Management
• $  329,273:  David Suavity, Professor, Epidemiology

12 of the 17 (71%) most highly compensated employees are male while 5 of the 17 (29%) are female.  It is also important to point out 23 of the 52 (44%) Fellows are female while 29 of the 52 are male.  The 17 most highly compensated employees received $16 million in compensation.  The 10 most highly compensated employees received $51 million from 2017-2022:

Jane Dietze:  Total Compensation 2017-2022:  $10 million

• 2022:  $2,996,245
• 2021:  $2,646,261
• 2020:  $1,343,353
• 2019:   $1,229,337
• 2018:  $  958,965
• 2017:  $  862,001

Christina Paxson:  Total Compensation 2017-2022:  $9 million

• 2022:  $2,046,296
• 2021:  $1,311,802
• 2020:  $1,437,755
• 2019:  $1,369,990
• 2018:  $1,540,707
• 2017:  $1,529,249

Joshua Kennedy:  Total Compensation 2020-2022:  $3 million

• 2022:  $1,218,173
• 2021:  $  974,236
• 2020:  $  643,712

Jack Elias:  Total Compensation 2017-2022:  $6 million

• 2022:  $1,012,199
• 2021:  $  932,832
• 2020:  $1,031,831
• 2019:  $  981,607
• 2018:  $  903,092
• 2017:  $  852,521

Sergio Gonzalez:  Total Compensation 2019-2022:  $3.5 million

• 2022:  $983,172
• 2021:  $763,379
• 2020:  $834,992
• 2019:  $813,685

Peter Levine:  Total Compensation 2021-2022:  $2 million

• 2022:  $969,173
• 2021:  $885,191

Barbara Chernow:  Total Compensation 2017-2022:  $5 million

• 2022:  $  931,475
• 2021:  $1,307,564
• 2020:  $  783,981
• 2019:  $  728,992
• 2018:  $  687,933
• 2017:  $  585,851

Erica Nourjian:  Total Compensation 2018-2022:  $3.5 million

• 2022:  $917,975
• 2021:  $734,295
• 2020:  $634,978
• 2019:  $620,191
• 2018:  $561,718

Richard Locke:  Total Compensation 2017-2022:  $5 million

• 2022:  $917,204
• 2021:  $945,122
• 2020:  $832,458
• 2019:  $801,535
• 2018:  $709,900
• 2017:  $668,147

Louis Rice:  Total Compensation 2017-2022:  $4 million

• 2022:  $743,828
• 2021:  $739,103
• 2020:  $732,142
• 2019:  $714,395
• 2018:  $696,744
• 2017:  $679,224

506 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $71 million:  Shawmut Design Construction, of Providence, Rhode Island for construction
• $29 million:  Verily Life Sciences, of San Francisco, CA for health services
• $ 8 million:  Compass Group USA Bon Appetit, of Armonk, NY for food services
• $ 7 million:  Gilbane Building Company, of Providence, RI for construction
• $ 4 million:  NextSource, of NY, NY for staffing

To read the IRS Form 990 (2021 for the year ending June 30, 2022), click here.