Harvard Officer Salaries Rise

University President Lawrence H. Summers saw a modest 4.5 percent raise in salary in fiscal year 2004, according to Harvard’s tax return, which was filed Monday with the Internal Revenue Service (IRS).

But Summers’ total compensation—including benefits and other allowances—fell 6.4 percent to $637,824, reflecting a decrease in the housing subsidy he receives from Harvard.

In a first for Harvard, the University spent over $1 billion on salaries and wages in fiscal year 2004—the period spanning July 1, 2003 to June 30, 2004. In its annual report, released in December, Harvard partly attributed its ballooning expenses to the addition of new faculty and staff, but also chalked up part of the 5 percent rise to salary increases.

Top University administrators were no exception, according to the IRS filings. While Harvard’s total compensation expenses—including benefits—for officers and directors dropped 14.5 percent to $2,846,715 in fiscal year 2004, several officials earned moderate raises in salary.

Provost Steven E. Hyman earned $371,710 in standard compensation, a 4.1 percent raise over last year’s salary, which is a subset of total compenstation. Including benefits, Hyman’s compensation dropped to $399,967.

Vice President and General Counsel Robert W. Iuliano ’83 earned $271,383, a 5.8 percent jump. Iuliano’s total compensation was $309,731.

Alan J. Stone, vice president for government, community and public affairs, saw his salary rise slightly to $267,620. His total $313,549 compensation package included benefits, $13,223 in loan interest subsidies, and $2,124 in storage expenses.

Vice President for Finance and Chief Financial Officer Ann E. Berman earned $252,738, including a summer sabbatical at reduced salary. With benefits, she received $293,331.

Donella M. Rapier, vice president for alumni affairs and development, earned $206,346 for about nine months of work. Including benefits and a $20,000 signing bonus, her compensation totaled $246,555.

Rapier succeeded Thomas M. Reardon, who served in the position for just over three months and received total compensation of $94,003. After leaving the position, Reardon spent the rest of the fiscal year working as senior advisor to the president, for which he received $198,149. His total compensation for that position, including benefits and $8,877 in loan interest subsidies, totaled $233,356.

Summers’ total $637,824 compensation included $522,714 in standard compensation, $31,384 in benefits, and a $83,726 housing subsidy.

Through a spokesman, Summers declined to comment on his compensation.

Summers’ compensation is not unusual among university presidents. Yale University President Richard C. Levin earned $695,025 in total compensation in fiscal year 2003, according to the Chronicle of Higher Education. And in the same year, Vanderbilt University Chancellor Gordon Gee raked in $887,209.

Summers’ housing subsidy is almost half last year’s figure. Last year, Summers attributed the high number for fiscal year 2003 to a large subsidy for taxes on his Washington, D.C. apartment.

As president, Summers is required to use the University’s Elmwood Avenue mansion as his home, so it is not counted among his compensation.

And in the eyes of the IRS, at least, Summers and Hyman stayed at the office later in fiscal year 2004. In 2003, the two administrators were listed as devoting 50-60 hours per week to their positions; the 2004 return says they spent “75+” hours per week on the job.

Outside of administration, all five of Harvard’s highest paid employees were from Harvard Medical School. Dean Joseph B. Martin pulled in $480,946 in total compensation, including $416,318 in salary.

As in years past, all of these salaries were eclipsed by the wages earned by the Harvard Management Company fund managers who invest the University’s $22.6 billion endowment.

According to a filing with the Massachusetts Office of the Attorney General, Senior Vice President for Fixed Income David R. Mittelman earned $25.4 million in salary and benefits. Senior Vice President for International Fixed Income Maurice Samuels earned $25.3 million in salary and benefits. Both are scheduled to leave with management company president Jack R. Meyer at the end of the fiscal year to start a new investment firm.

Jeffrey B. Larson, senior vice president for international equity, received just over $8 million in fiscal 2004. Larson left the management company in July to form his own firm, Sowood Capital Management.

Shawn Martin, portfolio manager for fixed income, earned $6.6 million in fiscal 2004.

FOLLOW THE MONEY

As a non-profit organization, Harvard pays no income tax. But its filings with the IRS reveal some of the other recipients of University funds.

Several firms were paid for investment management services. Grantham, Mayo & Van Otterloo received $25.8 million, while Charlesbank Capital Partners LLC was paid $18.1 million.

The University also spent $510,000 to lobby for “matters of concern” on the local, state, and federal level (see glance box).

And in a year where Harvard led higher education in attracting $540.3 million in charitable gifts, the University said it incurred $62.3 million in expenses related to fundraising.

—Staff writer Nicholas M. Ciarelli can be reached at ciarelli@fas.harvard.edu.