Executive Compensation at CalTech (2023)

The California Institute of Technology (CalTech) is a private research university focused on science and engineering.  Based in Pasadena, CA, Caltech has about 2,500 students (1,000 undergraduate and 1,500 graduate) whose predecessors have been awarded 48 Nobel Prizes.  Tuition, room and board total about $95,000 annually.  According to the school’s website, 51% of students receive an average need based assistance of $60,000.  Only 27% of students graduate with loans and the average indebtedness is $17,000.

CalTech houses and manages NASA’s Jet Propulsion Laboratory (JPL) – a federally funded research and development center – and consequently counts the federal government as its largest source of revenue. Revenue and expenses are not delineated between JPL and education on the Form 990.

Total revenue was $3.9 billion in 2023 with most revenue from JPL (federally funded by NASA) and awards ($2.8 billion), government grants ($324 million), investment income and gains ($102 million),  contributions ($369 milli0n) and tuition ($161 million).

Expenses totaled $3.7 billion in 2023 with the largest expenses reported to be compensation ($2 billion), contract services ($877 million), office-related expenses ($513 million), and grants ($122 million) – primarily to individuals.  1,881 students received $122 million in cash grants, or an average of $65,000 each.

Caltech’s expenses were about $200 million less than total revenue (and historically, expenses have been less than revenue), which means the school does not need to charge $95,000 annually for tuition, room, and board.  Caltech took in $161 million in tuition and awarded $122 million in cash grants suggesting that full pay students are subsidizing the education costs of those qualifying for need-based financial aid.

Caltech ended the year with $4.3 billion in net assets– an increase of about $500 million primarily due to unrealized gains on investments and unspent revenue in 2023.

12,365 employees received $2 billion in compensation, an average of $162,000. 6,542 employees received more than $100,000 in compensation with the 25 most highly compensated reported to be:

• $2,345,561:  Thomas F Rosenbaum, President/Trustee
• $1,419,063:  Scott H Richland, Chief Investment Officer
• $1,081,504:  Laurie Leshin, VP and Director, JPL
• $1,047,588:  Dexter A Bailey, VP, Adv and Alumni Relations
• $  923,204:  Patsy Isabellą Wang, Sr Mgr, Director of Investments (until 9/22)
• $  922,751:  Douglas N MacBean, Mgr Director of Investments
• $  876,213:  Larry Dean James, Interim Director, JPL (until 5/22)
• $  839,461:  David A Tirrell, Provost
• $  780,094:  Jennifer T Lum, General Counsel
• $  775,991:  Karen Sisson, VP Admin and CFO (until 7/23)
• $  702,554:  Robert Kirshner, Astronomy Professor and Exec Dr TIO
• $  668,861:  Brian Chen, Managing Director, Private Investments (until 5/23)
• $  652,312:  Alistair Thistlethwaite, Managing Dir, Public/Alt Securities
• $  596,615:  Cathy A Light, Secretary, Board of Trustees
• $  571,901:  Diana Jergovic, VP, Strategy Implementation
• $  502,778:  Sharon E Patterson, Associate VP for Finance and Treas
• $  482,674:  Sammy A Kayali, CFO and Manager, Lab Operations
• $  425,495:  Marc J Goettel, Former Director of Business Ops, JPL
• $  380,617:  Matthew W Brewer, Controller
• $  379,381:  Joseph E Shepherd, Former VP, Student Affairs
• $  377,281:  Kevin M Gilmartin, VP, Student Affairs
• $. 359,821:  Michael M Watkins, Former Professor, Aerospace and Geophysics:
• $  339,524:  Carol J Schull, EA to Pres/Asst Secretary (until 1/22)
• $  253,553:  Deborah Rodday, Sr Dr, Asst Sexy
• $  250,702:  Arturo Aguayo, Assistant Treasurer

The 25 most highly compensated employees received $18 million in 2023.  16 of the 25 (64%) most highly compensated employees are male while 9 of the 25 (36%) are female.  The most highly compensated employee was Thomas Rosenbaum who received $2.3 million in 2023; and $11 million from 2017-2023:

Thomas F Rosenbaum:  Total Compensation 2017-2023:  $11 million

• 2023:  $2,345,561
• 2022:  $2,283,897
• 2021:  $1,510,231
• 2020:  $1,378,803
• 2019:  $1,209,385
• 2018:  $1,142,842
• 2017:  $1,092,219

Caltech paid for first class or charter travel, made gross up payments or provided tax indemnification and provided a residence for personal use or provided a housing allowance.  To read more details about these expenses and deferred compensation, see the Form 990, Schedule J, Part III, Supplemental Information.   To read  about “transactions with interested persons,” see the Form 990, Schedule L, Part IV.

1,059 independent contractors received more than $100,000 in compensation.  The 5 most highly compensated were reported to be:

• $100 million:  Applied Physics Laboratory, of Laurel, MD for research and development
• $ 65 million:  Ball Aerospace Technologies, of Chicago, IL for aerospace
• $ 58 million:  Mantech Advanced Systems, of Fairfax, VA for information technology
• $ 53 million:  Peraton, Inc, of Herndon, VA for info technology
• $ 40 million:  Raytheon, of El Segundo, CA for aerospace

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