Harvard in the news again !

Harvard is reckoned to have the largest bursary/endowment of any university. 2015 valuation was $35.7 Billion, yes Billion and its in the news because over the last 5 years its 11 “money managers” collected $242 Million, mostly bonuses related to performance. Obviously to earn a bonus you need to exceed your target, and conveniently these 11 managers were heavily involved in setting their own targets !  When compared with other similar universities their targets were abnormally low. The Harvard money managers averaged 11% pa, beating their easy target of 10%.

However other universities had targets around 12% and on average they achieved 13.5% pa, so whatever way you look at it the Harvard money managers got paid heaps for a very mediocre performance. Heaps is the right term because of all the universities they were the highest paid!

Just as an aside 1) the cost of attending Harvard on their website is between $65 & $70,000 Per Year. 2) Harvard, like other universities(regarded as “non-profits”)  do not pay any taxes, no property taxes, no capital gains taxes. So Harvard’s endowment of $35.7 Billion will probably earn another $3.5/$4.0 Billion next year and pay no tax! I hear the American national anthem playing in the background !

About tryingtobefair

More than a little interested in how we can all make the community we live in a better place. "The world has enough for everyone's need, but not enough for everyone's greed" Gandhi. Let's all learn what's enough.
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