Harvard University paid 6 managers of their endowment fund $32.8 million in 2012.
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.
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.
In case you missed it, Harvard University has a $32.7 billion endowment fund. According to Investopedia.com, an endowment fund is
An investment fund set up by an institution in which regular withdrawals from the invested capital are used for ongoing operations or other specified purposes.
According to the Harvard University website,
The total 2013-2014 cost of attending Harvard College without financial aid is $38,891 for tuition and $59,950 for tuition, room, board and fees combined.
If Harvard used its endowment fund to pay tuition for students, it could educate 840,811 individuals before the fund was completely depleted. This doesn’t take into account the fact that rich Harvard alumni would continue to donate to replenish university funds, or the fact that the fund managers would continue to ensure that the fund is never completely spent.
Colleges and universities are a huge moneymaking scheme. They are sitting on millions (if not billions) of dollars in endowment funds. They charge students outrageous fees to attend, resulting in many students graduating with massive student loan debts. And after graduation they badger alumni to donate even more money.