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August 27, 2014

Harvard Alumni Protest Big Pay Hike for Endowment Managers

A group of Harvard graduates has sent a letter to university President Drew Faust criticizing a huge jump in compensation for managers of the institution's investment portfolio, Bloomberg reports. Salaries, benefits, and bonuses at the Harvard Management Company, the internal unit that oversees the university's $32.7-billion endowment, rose from $63.5-million in 2010 to $132.8-million last year, according to tax filings.

The nine signatories, members of the class of 1969 who have previously criticized endowment managers' pay, said they were "astonished" by the compensation figures, which have increased at a greater rate than the fund's value. A university spokeswoman said Harvard's use of in-house asset managers rather than an outside firm has saved the institution more than $1.5-billion over the past decade.