Word: hmc
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...alumni protested what they viewed as excessive compensation in a series of letters to then-President Lawrence H. Summers. Faced with unwelcome media attention, the HMC board voted in 2004 to impose lower pay ceilings for fund managers, and HMC President Jack R. Meyer, who oversaw the endowment's growth from $4.7 billion to $26 billion, left the organization the next year to start his own hedge fund...
...report how much of that money has been retracted after the endowment’s recent underperformance. According to HMC’s policies, which emphasize sustained, long-term growth, internal investment managers are awarded bonuses if they grow the value of the endowment above benchmarks set by the HMC Board, but those bonuses can be retracted in later years if the fund underperforms benchmarks...
...compensation for HMC’s president and top five officials totaled $26.8 million. In 2003, when managers were paid $107.5 million, many of the same alumni issued sharp protestations—which reportedly disgruntled many HMC managers and motivated them to leave Harvard to found private firms...
David Kaiser ’69, who signed the letter to Faust, emphasized in an interview with The Crimson that the global financial crisis has exposed fundamental flaws in the aggressive strategies used by investors around the world. He acknowledged that HMC has for years delivered spectacular endowment growth, but said that the drastic budget cutbacks now plaguing the University illustrated the need for “slower but more sustainable rates of growth...
Therefore, although there are lessons to be learned going forward, calls to drastically scale back risk-taking in the future are unfounded. This would prevent Harvard from recovering from its current dire straits and stunt our growth prospects. HMC should instead look to manage money mindfully, attaining good enough returns given the university’s particular situation. This is our best hope to seeing the endowment recover and making the budget cuts of the past year a distant memory...