Executive Compensation at Brown University (2023)

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 about $90,000 or about $360,000 for a 4-year degree.

When analyzing colleges and universities generally, there are 8 key numbers to look at:

• Revenue:  In 2023, Brown reported total revenue of $1.6 billion;
• Contributions, Gifts, and Grants:  In 2023, Brown reported $672 million;
• Tuition and Fees:  In 2023, Brown reported $676 million in tuition and fees;
• Investment Income/Gains/Royalties:  In 2023, Brown reported $28 million (had a $180 million investment income loss that was partially offset by gains – hence the low number);
• Expenses:  In 2023, Brown reported total expenses of $1.6 billion (including $86 million in depreciation);
• Grants:  In 2023, Brown reported giving $337 million in grants to students;
• Net Income:  Brown reported net income of $14 million in 2023; and
• Net Assets:  In 2023 Brown reported net assets of $7.7 billion.

In other words, Brown took in sufficient income to cover all expenses and make $14 million in 2023. If you zero in on tuition and fees and grants, it is interesting to note Brown took in $676 million in tuition and fees and made cash grants of $337 million (50% of tuition and fees) to students unable to pay full tuition.  In other words, the full pay students subsidized and paid for the grants to other students (note:  In years past this is more evident when Brown would have several hundred million dollars in excess revenue at year-end that would be added to the general fund).

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

• Total Number of Employees:  Brown reported having 13,028 employees in 2023;
• Total Number of Employees Receiving More Than $100,000:  Brown reported 1,293 employees received more than $100,000 in compensation;
• Total Compensation:  Brown reported $667 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 first class or charter travel, travel o companions, health or social club dues or initiation fees, 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, Jain Mukesh for $200,000 for personal reasons; the balance due is $160,000;
• Most highly compensated independent contractors and how much did they receive: 631 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).

13,028 employees received $667 million in compensation, or an average of $52,000 (note:  Brown also spent $6 million with NextSource for staffing needs).  1,293 employees received more than $100,000 in compensation with the 17 most highly compensated reported to be:

• $2,882,923:  Jane Dietze, VP and Chief Investment Officer
• $1,831,198:   Christina Paxson, President/Fellow
• $1,285,053:  Joshua T Kennedy, Managing Director
• $1,099,714:  Peter Levine, Managing Director
• $1,064,715:  Jack Elias, SVP, Health Affairs (until 2/22)
• $1,063,933:  Grace Calhoun, VP, Athletics and Recreation
• $  979,393:  Richard Locke, Provost
• $  943,848:  Erica Nourjian, Head of Operations – Investments
• $  933,468:  Mukesh Jain, Dean of Bio and Med (begin 3/22)
• $  903,451:  Sarah Latham, VP, Finance and Admin (begin 1/22)
• $  886,858:  Sergio Gonzalez, SVP, Advancement
• $  803,608:  Katie Galvin, Investment Director
• $  530,015:  Kevin McLaughlin, Dean of Faculty
• $  520,620:  Michael White, CFO and President, Finance
• $  518,549:  Russell Carey, Interim EVP, Finance (10/21 -1/22)
• $  463,727:  Jill Pipher, VP, Research
• $  438,314:  Michael Gugliemo, VP, Facilities Management

10 of the 17 (59%) most highly compensated employees are male while 7 of the 17 (41%) are female.  The 17 most highly compensated employees received $17 million in compensation.  The most highly compensated employee was Jane Dietze, the Chief Investment Officer, who received nearly $3 million in 2023, and $13 million from 2017-2023:

Jane Dietze:  Total Compensation 2017-2023:  $13 million

• 2023:  $2,882,923
• 2022:  $2,996,245
• 2021:  $2,646,261
• 2020:  $1,343,353
• 2019:   $1,229,337
• 2018:  $  958,965
• 2017:  $  862,001

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

• $77 million:  Shawmut Design Construction, of Providence, RI for construction
• $41 million:  Dimeo Construction Company, of Providence, RI for construction
• $12  million:  Compass Group USA Bon Appetit, of Armonk, NY for food services
• $ 6 million:  Sarra Engineering, of Cranston, RI for engineering
• $ 6  million:  NextSource, of NY, NY for staffing

To read the IRS Form 990 (2022 for the year ending June 30, 2023), click here.