Some Harvard Alums Call For Money Managers’ Bonuses To Be Rescinded

Harvard University
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A small group of Harvard University alumni is protesting the multimillion-dollar bonuses paid to the money managers of the university’s endowment, which has lost more than $8 billion since the end of the last fiscal year.

The five highest-paid executives at Harvard Management Co., which oversees the endowment investments, earned between $3.9 million and $6.4 million each – made up mostly of bonuses – for their performances during the last fiscal year, according to a university announcement last month. During that time, the Harvard endowment earned 8.6 percent. In comparison, college endowments lost an average of 3 percent in that period, according to an industry survey released this week.

– Boston.com

The Boston Globe is reporting that 10 alumni of the Harvard Class of ’69 are requesting that the $21 million in bonuses paid out to Harvard Management Company be returned.

There was a loss last year but in comparison to the hits the market took it appears that the fund managers’ return was very favorable.*

But amid the current financial crisis in the economy, executive bonuses are under intense scrutiny.

Last month Andrew Cuomo,  New York’s attorney general urged Merrill Lynch to withhold a reported $10 million bonus for CEO John Thain.john-thain-merrill-lynch Cuomo’s intent was to ensure that executives of financial institutions asking for and receiving government bailout funds, not receive bonuses.


Goldman Sachs decided to withhold executive bonuses and was lauded by Cuomo as a positive role model.

What do you think?

Accountability…sour grapes…reality check ???

* source: Harvard Management Company filings

** MetWest Scene Update February 21, 2009 – How Harvard Superstars Crashed/Forbes.com


JOHN PRESCOTT

BostonKayakGuy

Top Real Estate Agent for more than 14 years, serving the real estate needs of Wellesley, South Natick, Weston, Needham, Wayland, Newton, Framingham and other MetWest communities. www.johnprescott.net

JOHN PRESCOTT

Vice President

Century 21 Commonwealth

508-523-9252

BostonKayakGuy…The MetWest Scene


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2 Responses

  1. your blog is so fantastic, i cant believe it, so cool. greats

  2. […] a matter of weeks ago, 10 Harvard alums were calling for the $26.8 million in executive bonuses of Harvard Management Company to be given […]

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