Executive Compensation at Stanford University

Stanford University is a private research university with about 18,000 students (8,000 undergrads and 10,000 graduate and medical students) in.  Approximately 54,000 undergraduate students apply annually; 4% or 2,000 are admitted.  Annual tuition, room and board is about $90,000 or about $360,000 for a 4-year degree.

Stanford is overseen by 32 trustees, 27 of whom are independent, although the most recent Form 990 (2023 for the year ending 8/31/23 lists 35 trustees (due to timing differences), 18 of whom are male, while 17 are female (note:  gender is not reported on the Form 990; gender was determined by name and google searches).

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

• Revenue:  In 2023 Stanford reported total revenue of $8.5 billion;
• Contributions, Gifts, and Grants:  In 2023, Stanford reported $3.5 billion;
• Tuition and Fees:  In 2023,  Stanford reported $1.2 billion in tuition and fees;
• Investment Income/Gains/Royalties:  $1.3 billion;
• Expenses: In 2023 Stanford reported total expenses of $8.1 billion (including $502 million in depreciation);
• Grants:  In 2023 Stanford reported giving $667 million in grants to students;
• Net Income:  Stanford reported net income of $340 million in 2023 ($2.2 billion in 2022); and
• Net Assets:  In 2023 Stanford reported net assets of $51 billion.

In other words,  Stanford took in sufficient income to cover all expenses and make $340 million in 2023 (compared to $2.2 billion in 2022). If you zero in on tuition and fees and grants, it is interesting to note Stanford took in $1.2 billion in tuition and fees and made cash grants of $667 million (56% 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; for example, in 2022 Stanford reported $2.2 billion in net income).

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

• Total Number of Employees:   Stanford reported having 40,771 employees in 2023;
• Total Number of Employees Receiving More Than $100,000:  Stanford reported 11,281 employees received more than $100,000 in compensation;
• Total Compensation:   Stanford reported $4.9 billion was paid in compensation;
• Highly Compensated Employees:  22 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: Stanford reported paying for first class or charter travel, travel for companions, a personal residence or providing a housing allowance, and personal services.
• Personal loans to employees:   Stanford reported making 8 personal loans ranging from $85,350-$780, 534 to key employees and officers for housing, including 4 loans totaling $1,150,000 to Elizabeth Zacharias with a balance due of $1,080,000; 3 loans totaling $768,150 to Farnaz Khadem with a balance due of $768,150; and 1 loan to Lloyd Minor for $780,534 with a balance due of $780,534.
• Most highly compensated independent contractors and how much did they receive: 922 independent contractors received more than $100,000 in compensation (the 5 highest are listed below) and
• Supplemental Retirement Plans: Stanford participates in supplemental retirement plans (see the Form 990, Schedule J, Part III Supplemental Information for details).

40,771 employees received $4.9 billion in compensation, or an average of $120,000. 11,281 employees received more than $100,000 in compensation with the 22 most highly compensated reported to be:

• $7,154,217:  David Shaw, Director, Football (thru 11/27/22)
• $6,474,243:  Robert Wallace, CEO, SMC
• $5,043,393:  Frank Hanley, Chief, Pediatric Cardiothoracic
• $4,470,822:  Lloyd Minor, VP, Medical Affairs
• $3,428,058:  Tara Vanderveer, Director, Women’s Basketball
• $3,330,046:  Persis Drell, Provost
• $3,061,856:  Jay Kang, Senior MD, SMC
• $2,940,109:  Yiping Woo, Professor and Chair, Cardio Surgery
• $2,409,076:  Marc Tessier-Lavigne, President, Trustee (thru 8/31/23)
• $1,892,396:  Robert C Reidy, VP, Lands, Buildings and Real Estate
• $1,764,682:  Martin Shell, VP, Chief ERO
• $1,132,905:  Randall Livingston, VP, Business Affairs/CFO
• $1,073,517:  Debra Zumwalt, VP, General Counsel
• $1,039,804:  Jon Denney, VP, Development
• $  782,648:  Howard Wolf, President, Stanford Alumni Association
• $  725,345:  Elizabeth Zacharias, VP, Human Resources
• $  676,257:  Farnaz Khadem, VP, Communications
• $  566,495:  Ryan Aden, VP, Government Affairs
• $  446,569:  Stephen Streiter, VP, SLAC
• $  441,480:  Deborah Cullinan, VP, Arts
• $  432,218:  Bradley Haywood, Former Interim VP, Communications
• $  364,771:  Howard Pearson, Former Interim VP, Development

The 22 employees listed above received $50 million in compensation.  18 of the 22 (82%) employees listed above are male while 4 of the 22 (18%) are female.  The most highly compensated employee was David Shaw, the Director of Football (who left Stanford 11/27/22) who received more than $7 million in 2023; $44 million from 2017-2023:

David Shaw:  Total Compensation 2017-2023:  $44 million

• 2023:  $7,154,217
• 2022:  $7,416,765
• 2021:  $6,592,230
• 2020:  $8,924,683
• 2019:  $4,812,897
• 2018:  $4,613,707
• 2017:  $4,311,543

Stanford paid for first class or charter travel, travel for companions, personal services (i.e. maid, chauffeur, chef) and provided a housing allowance or a residence for personal use.  See the Form 990, Schedule J, Part III, Supplemental Information for more details on these expenses, deferred compensation and supplemental executive retirement plans.

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

• $63 million:  The Whiting-Turner Contracting Company, of Baltimore, MD for construction
• $47 million:  Devcon C0nstruction, Inc, of Milpitas, CA for construction
• $43 million:  Magnit APC I LLC, of Bethpage, NY for workforce solutions
• $33 million:  GCI General Contractors, of San Francisco, CA for construction
• $31 million:  Palisade Builders, of Campbell, CA for construction

To read the Form 990 (2022 for the year ending 8/31/23), click here.