Harvard University paid its top six endowment managers $32.8 million in 2012, an 11 percent increase from a year earlier.
Andy Wiltshire, head of alternative assets for Harvard Management Co., which invests the school’s $32.7 billion endowment, was the top earner with $7.9 million in compensation, according to a statement from the Cambridge, Massachusetts-based university.
More than 90 percent of Harvard portfolio managers’ bonus pay is variable and based on investment performance, according to the statement. The money management group’s goal is to generate long-term returns for the university, said James Rothenberg, Harvard’s treasurer and chairman of Harvard Management’s board of directors.
“The hybrid model that HMC employs, featuring a robust internal management team of high-performing individuals, has saved the university more than $1 billion compared to what an equivalent external management strategy would have cost over the past decade,” Rothenberg, who is also chairman of Capital Research & Management Co. in Los Angeles, said in the statement.
Next-highest paid after Wiltshire was Alvaro Aguirre-Simunovic, natural resources portfolio manager, who received $6.57 million. Stephen Blyth, head of public markets, was paid $5.35 million.
Jane Mendillo, president and chief executive officer of the fund since 2008, received $4.8 million and Daniel Cummings, real estate portfolio manager, got $4.18 million, according to the statement. Robert Ettl, chief operating officer for the fund, was paid $3.96 million.
Drew Faust, the university’s president, received $1.04 million in the school’s fiscal year that ended June 30, 2013, a 16 percent increase from the year earlier, according to a tax document filed by the university, the oldest and richest in the U.S.
There were 42 college presidents earning $1 million or more in 2011, the most recent data available, according to a survey by the Chronicle of Higher Education that was published in December. University of Chicago President Robert Zimmer led the pack, with compensation of $3.36 million in that year.
Faust’s base salary rose to $751,960, and her compensation includes a benefit of $121,916 for the use of the president’s home, which she’s required to live in by the terms of her employment, according to the tax document.