BOSTON May 16 Harvard University paid its top five in-house money managers $28.8 million in 2012, Harvard Magazine reported on Friday, a nearly 9 percent hike from the previous year.
Harvard, the world's richest university, began tying senior investment manager pay to the performance of its $30 billion portfolio in 2010 after it lost billions of dollars during the 2008-09 financial crisis.
While Harvard's payouts to managers are significantly less than those on Wall Street or at privately owned hedge funds, news of multimillion-dollar pay packages for some university employees have angered alumni in the past.
Andrew Wiltshire, who oversees alternative assets investments, remained the Harvard Management Company's best-paid manager in 2012 with compensation of $7.9 million - up from $6.6 million in 2011, Harvard Magazine reported.
The head of the endowment, President and Chief Executive Officer Jane Mendillo, saw her compensation slip to $4.8 million from $5.3 million. But Alvaro Aguirre-Simunovic, who heads the fund's natural resources portfolio, saw his compensation rise to $6.6 million from $5.3 million.
Harvard's endowment grew to $32.7 billion from $30.7 billion during the fiscal year that ended June 30, 2013.
The university's 2010 pay overhaul tying compensation to endowment performance came as Wall Street's huge salaries and bonuses angered many Americans, who blamed bankers' mistakes for high unemployment and the economic crisis.
Under the system, Harvard managers can only get a pay hike if they out-perform the market. (Reporting by Richard Valdmanis; Editing by Tom Brown)