How much the president of Harvard University earns is not an issue discussed openly with open ended answers. Responsible for overseeing both academic and administrative functions of the university with members of the board of directors and other stakeholders in the university which includes the faculty members, Harvard University President earning should be worth the task right? Let’s find out in this writing and learn about ‘How Much Does The President Of The Harvard University Earn?’.
How Much Does The President Of The Harvard University Earn?
It’s interesting to know that the President of Harvard University is entitled to several bonuses, allowances, promotional offers and employee benefits and this varies from one administration to another and some of this benefits are voted for by Members of Harvard Corporation. The differences notwithstanding, an in depth Analysis of the earnings of the President of Harvard University from 2015 to 2019 reveals that they earn more than $1 million Dollars Annually.
Further Information On the Earnings of Harvard University President
• In 2015 former President Harvard University Drew G. Faust earned $1.4 million.
•In 2016 Faust earned a total of $1.7million.
• In 2017, before her tenure ended she earned over $1.7 million.
•Her compensation earnings when she stepped down in July 2018 was over $3 million.
•The new president of Harvard University who assumed office in July 1 2018, earned $ 570,072 as a bi-annual payment since assumption of office.
Factors that Determines How much the President of Harvard University Earns
Some of the factors that determine how much the president earns includes:
- The decisions of the Members of Harvard Corporation.
- In the case of the former president of Harvard University; Faust, they voted on how much she would receive each year and this is to recognize and encourage exceptional service and retention.
- The duration and tenure of office also is another factor, the longer the duration, the bigger the compensations he gets.
- The bonuses and certain other conditions also affects what the president earns.
- Generally, The Harvard Human Resources Compensation Department “gathers and analyzes market data about salaries…and also reviews and adjust University salary ranges…”(Harvard information for employees)
Bonuses and Allowances of the President of Harvard University
Some of the bonuses and Allowances includes but not limited to:
•University provided housing benefits, which is non-taxable.
•The long-term service bonuses.
•Deferred compensation among others. They money accruing for this compensation is kept in a separate account called “the deferred compensation account”.
During the tenure of the former President, Drew G. Faust, she earned a long-term service bonus of $1000,000.
A deferred compensation of $1,200,000 and $34, 814 in retirement compensation.
Facts about The earnings of the President of Harvard
- President Neil Rudenstine’s salary for the 1999-2000 fiscal year was $352,650 without benefits.
- Neil Rudenstine was the president of Harvard University from 1991-2021.
- President of Harvard University from 1971-1991 and from 2006-2007, Derek Bok in 1982 earned $81,659, which according to reports happens to be the highest he earned in 12 years as the president of the University.
- It’s important to state that the President is not the highest paid employee of the University. Like in the case of Bok, some faculty deans were earning more than him.
- This is believed to be part of the tenets of the University which places considerations on individual performance in setting the pay of key officials.
- Nathan Marsh Pulsey 1953-1961; It is important to know that during his tenure, Harvard’s endowment rose from $304 million to more than $1 billion.
- Drew Gilphin Faust 2007-2018; the immediate former President of the University, was earning more than $1.5million annually.
- The earnings of Lawrence S Bacow who is the current president since 2018-till date remained unannounced till 2020, he is believed to be earning $570,072 half a year.
Harvard University endowment
The discourse will not be complete if we do not talk about Harvard endowment. Harvard endowment is currently the largest endowment in the world for academics. In 2021 fiscal year, it’s value increased by over $ 10 billion. It has about $53 billion worth of asset under it’s management.
What is it Used For?
The Harvard endowment is made up of more than 14,000 funds, is used to support faculty and students, including professorships and financial aid for undergraduates, graduate fellowships, student life and other activities.
It serves as the largest financial asset of the University.
Harvard endowment major areas of investment?
Harvard endowment owned by Harvard University; the wealthiest University in the world, invests in real estate, private equity, hedge funds and others.
It is important to note that the source of the earnings of the President of Harvard University is from the Harvard endowment fund.
Harvard University remuneration for staffs including the topmost rank in the academic section of the University; the President of Harvard University, is such that guarantees the financial convenience and stability as well as encourages productivity and effective commitment in service delivery. The aim is to pay them commensurably to deliver effectively.
Frequently Asked Questions
- What other benefits accrues to the President of Harvard University?
What everyone should know is that earnings of the president of Harvard annually or bi-annually is not static and it varies from administration to administration. The earnings of the President of Harvard is the sum total of all the bonuses, allowances and compensations which accrues to him within a stipulated period, which be annually or half a year.
For instance the $3,612,247 which Faust earned in 2018 as her base compensation was a sum of all her bonuses including non-taxable (personal value of University provided housing benefits).
- What is the salary ranges of professors in Harvard University?
An estimate from a study of over 30 Harvard University professor salary statement (s) shows that they earn an average of $261,255. This estimation includes bonuses, compensations and Allowances.
This estimation could still rise to about $307,090 per year, depending on the administration and some other factors.