Princeton University paid four of its endowment managers a combined $9.2 million in 2013. As Bloomberg reports, this is a 46% increase from a year earlier and four times the increase Harvard University paid its top investors. We are sure they earned it - besides, last year was a difficult year for every asset manager eh (even as the endowment gained only 11.7% last year - average for large endowments? But as one apologist noted "It's easy to whack these guys," - yes it is! But while "it looks big in percentage terms, it’s a basis point or two compared to the endowment," - oh well that makes it ok then. Once again, it pays to be in the 'elite'.
As Bloomberg reports, Princeton University paid four of its endowment managers a combined $9.2 million in 2013, a 46 percent increase from a year earlier and four times the increase Harvard University paid its top investors.
Andrew Golden, the president of Princeton University Investment Co., the company known as Princo that manages the school’s $18.2 billion endowment, collected $3.9 million in total compensation last year. The 55-year-old’s remuneration included a 94 percent increase in retirement and deferred compensation and a 48 percent jump in bonus pay, according to the university’s latest tax return.
The endowment returned 11.7 percent last year, matching the average return posted by endowments greater than $1 billion, according to the National Association of College and University Business Officers and Commonfund Institute’s 2013 endowment study.
So they deserve the raise, right?
“It’s easy to whack these guys,” Charles Skorina, founder of a San Francisco-based executive search firm specializing in investment management, said by phone. “It looks big in percentage terms, but it’s a basis point or two compared to the endowment.”
And summing it all up...
The number of presidents at public universities who made at least $1 million increased to nine from four during the 2012-2013 school year, according to a report by the Chronicle of Higher Education released Sunday. The Institute for Policy Studies published a report on Sunday that revealed that the public universities with the highest executive compensation also tend to have the fastest growth in student debt and use of lower-paid adjunct faculty.
It's good to be king.