Faust Made $1.2 Million in 2014

Stephen Blyth, then head of public markets for HMC, made $8.3 million in calendar year 2014

UPDATED: May 15, 2016, at 6:57 p.m.

In his last year as the head of public markets for the Harvard Management Company, Stephen Blyth—now the CEO of Harvard’s investment arm—earned $3 million less than he did the year before, making about $8.3 million in the 2014 calendar year compared to $11.5 million in 2013.

University President Drew G. Faust saw a pay increase—though her compensation was again dwarfed by those of top HMC executives—taking home $1.2 million over the course of the year, roughly $91,000 more than she received in the previous year. The figure includes $810,884 in salary and $153,460 in benefits such as her residence at 33 Elmwood Ave. in Cambridge, according to recent Internal Revenue Service tax filings. Still, the presidents of other peer institutions often make much more than Faust; Lee C. Bollinger, the president of Columbia University, made $4.6 million in 2013, according to a Chronicle of Higher Education database. Amy Gutmann ’71, the president of the University of Pennsylvania, made more than $3 million that year.

Faust and Blyth’s compensations are among the earnings of several top Harvard officers the University makes public as part of its Form 990 tax filings with the Internal Revenue Service. These are required of all tax-exempt organizations.

In 2014, Blyth was outearned by Andrew G. Wiltshire, who made $10.4 million in 2014 and has since retired as the the head of alternative assets at HMC, and Daniel W. Cummings, who earned $8.7 million in 2014 and is the company’s real estate portfolio manager. Compensation for HMC executives investment is tied to performance.

Jane L. Mendillo, who resigned as CEO of HMC in 2014, earned $13.8 million in the 18 months leading up to her departure from the investment company.

HMC has consistently returned less on the University’s investments compared to peer institutions in recent years. In fiscal year 2015, Harvard returned 5.8 percent on its endowment investments, while Yale, Princeton, and MIT doubled Harvard, returning 11.5 percent, 12.7 percent, and 13.2 percent on their respective endowments. Blyth has promised to make several changes to HMC’s investment strategies to improve the investment company’s performance, including a new compensation model to tie more of portfolio manager compensation to aspects linked to the company’s overall success.

Harvard’s top administrators saw modest pay increases, with University Provost Alan M. Garber ’76 receiving a total of $833,167—an increase of roughly $25,000 from last year—and Executive Vice President Katherine N. Lapp earning $671,789, up from $657,955 in 2013.

Dean of Harvard Business School Nitin Nohria was the highest-earning dean listed in the filing, receiving a total of $727,365. Michael D. Smith, dean of Harvard’s Faculty of Arts and Sciences, took home $683,395 in salary and benefits—a pay jump of about $189,000 from 2013.

Both Nohria and Smith outearned outgoing Harvard Medical School Dean Jeffrey S. Flier, 2013’s top-paid dean. Flier will step down from the post in July; Harvard is currently searching for a replacement.

The IRS tax filing details the compensation of several of Harvard’s other top-paid employees. Scott G. Kennedy, a Medical School professor, was Harvard’s highest earning professor in 2014, making $646,280 including significant bonuses and other reported compensation. Vilangadu G. Narayanan and Paul M. Healy, both Business School professors, earned $638,940 and $606,618, respectively.

A number of other top administrators’ pay packages were listed in the 990 filings. Paul Andrew, the University’s Vice President for Public Affairs and Communications, took in $315,649, while Robert W. Iuliano ’83, Harvard’s general counsel, made $572,434. Harvard Vice President for Alumni Affairs and Development Tamara E. Rogers ’74 made $459,495, a slight increase from the year before, in the midst of the University’s record-breaking capital campaign.

—Staff writer Andrew M. Duehren can be reached at andy.duehren@thecrimson.com. Follow him on Twitter @aduehren.

—Staff writer Daphne C. Thompson can be reached at daphne.thompson@thecrimson.com. Follow her on Twitter @daphnectho.

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