University President Drew G. Faust earned just over $1.4 million in compensation in calendar year 2015, a pay bump from the approximately $1.2 million she made in 2014.
That figure includes $852,920 she made as a base salary, $160,403 in non-taxable benefits like her residence at 33 Elmwood Ave., and $333,825 she was credited in deferred compensation. Members of the Harvard Corporation—the University’s highest governing body—decide annually how much money to contribute to the President’s deferred compensation account. In 2015, the Corporation voted to credit $300,000 to Faust’s account.
Faust’s earnings—and the earnings of several of Harvard’s top officers—were made public as part of the University’s Form 990 tax filings, which are submitted annually to the Internal Revenue Service as a requirement for tax-exempt organizations. 2015 is the most recent year for which the forms are public.
Faust’s compensation was again dwarfed by that of several of her colleagues at Harvard Management Company, the University’s struggling investment arm. Stephen Blyth—who served his first and only year at the helm of HMC in 2015—earned roughly $14.8 million, outpacing the nearly $8.3 million in salary he drew in 2014 as the firm’s head of public markets. Daniel Cummings, the firm’s real estate portfolio manager, made nearly $11.5 million in pay in 2015.
Two of the firm’s managing directors, Michele Toscani and Graig Fantuzzi, earned more than $5 million and $4 million, respectively. Both announced plans to spin off from HMC this year and start their own hedge funds.
All told, the six highest-paid HMC executives earned a collective $53.4 million in 2015.
HMC has drawn criticism from some alumni for the sizeable compensation packages its executives receive: Two separate classes of alumni have raised the issue in letters addressed to Faust within the past year. The firm, which is undergoing a dramatic internal restructuring with CEO N.P. Narvekar at the helm, said it will more closely tie its executive compensation to the health of the overall endowment, rather than the performance of specific asset classes.
The firm returned negative 2 percent on its investments in fiscal year 2016—the lowest returns at Harvard since the height of the financial crisis.
Dean of the Faculty of Arts and Sciences Michael D. Smith made $711,175 in salary and benefits, while former Medical School Dean Jeffrey S. Flier and Business School Dean Nitin Nohria made $678,712 and $758,732 in salary and benefits, respectively.
The form also listed some of the University’s highest-compensated faculty members. Four of the highest paid faculty members hail from the Business School, and all earned in excess of $1 million in 2015.
Business School Professor Richard H. Vietor, who drew in the most money, made nearly $1.7 million. Economics professor Roland Fryer was the highest-compensated professor in the Faculty of Arts and Sciences, receiving more than $618,000 in 2015.
—Staff writer Brandon J. Dixon can be reached at firstname.lastname@example.org. Follow him on Twitter @BrandonJoDixon.
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