Swensen’s raise tops $1 million
Investments Office chief nets $2.7 million as one of three University employees earning seven figures
Yale Investments Office czar David Swensen GRD ’80 received a $1.1 million raise in 2005, increasing his salary to more than three times that of University President Richard Levin, according to Yale’s most recent federal tax filings.
Swensen, who earned $2.7 million, was among three Yale employees with a paycheck over $1 million. Levin’s 2005 salary of $869,000 was only fourth-highest on the University’s payroll, although it was the highest among presidents of Ivy League schools.
Swensen’s deputy, Dean Takahashi ’80 SOM ’83, earned $1.7 million, and School of Medicine...
Swensen is a hero, and a treasure to Yale. NO ONE would do what he does--and deliver the returns that he has--for his relatively modest paycheck. Harvard Mgmt Co managers jump ship every year for paychecks in the tens of millions. Bravo, David!
Swensen took Yale's flagging--nay, failing--endowment (almost done in after years of--sorry--liberal overspending) from its paltry $1.3 billion to its current and more princely $22 billion. He has delivered more value to Yale than all donors combined--and he does it for practically nothing.
Outside of Yale, Swensen is a giant in the industry, a true pioneer, whose thinking is responsible for asset-allocation policies for endowments worldwide.
Every student at Yale--most especially every student on financial aid--should make a point of passing by David's office and tipping their caps to him. Buy him lunch, for crissakes! And when you see him on the street (those of you who might actually recognize this humble, low-key fellow), thank him, thank him, THANK him!
[And any student still chanting the perennial "Yale should spend more of its endowment mantra," please take Econ 101 first--and study the history of the Yale endowment--before spouting off.]
The man is a giant, I tell you , a GIANT.
Were Yale to hire a full-service (outside) institutional investment-managment firm, it could likely negotiate a very low rate. For the sake of argument, let us set that rate at an absurdly low 25 basis points (i.e., one quarter of one percent), all in, on assets under management. I will even exclude any consideration of performance bonuses.
Let's see... 25 bps on $22 billion, what's that work out to, kids?
Hmm...? I can hear your fingers whizzing about your ol' HP 12Cs; got it yet?
For you liberal arts majors, here comes the answer:
$55 million
David Swensen, by accepting his $3 million, effectively donates $30 million to the university on an annual basis.
How much did YOU give this year?
I don't understand why Swensen does what he does for so little money. Why doesn't he at least take a year off and make 50 million or more in the private sector? He could probably triple his net worth in one year by doing this and still come back to Yale afterwards.
Nobody is daring to come forward on just what kind of investment is going on there.Tax Shelters ?, Naming new structures after a donor?Promises of Tenured and professor positions for contributors to this Endowment?
Is Enron money in there ? Halliburton ?
Mexican Fox affiliated factories ? Mexican Oil researchers ?
it's still a vulgar paycheck, but if the University say's ok then, Or is this President Bush's Northeast pittance that is redirected to a university promising better,safer communities here for the visiting important relatives of this country and others
Swensen should start up his own hedge fund. He could be pulling in upwards of a billion a year.
-John Young
Oi: I *knew* some no-nothing would come out of the woodwork, spouting her scripted "vulgar paycheck" and "just what kind of investment is going on there."
I *did* enjoy how the cut/paste script degenerated quickly into incoherency (I guess ADD hits the lock-step Lib crowd just like everyone else). Kid is probably on full scholarship, too.
Here's a message, El Liberala: I *dare* you to forego your financial aid (it is, after all, "vulgar" financial aid, no?); more important, I dare ANY disgruntled Yalie to forego his/her diploma. NEVER HAPPENS. Yes, you will cry and whine and kick and scream--you will even put something mildly distasteful on your mortarboard at graduation--but, by gum, graduate you will, won't you?
NO GUTS; NONE!
Other questions answered:
David Swensen ALREADY did what several of you suggest (i.e., he already made millions on Wall St.).
Why does he do what he does? Well, in addition to being a humble man (as previously noted), and loyal and grateful to Yale (as you all someday will be--even you wet-behind-the-ears protestors will use your network someday), I will paraphrase his thinking (and, David, if you are reading, please forgive me):
"I earn more money than I can ever spend, I feel good doing it, I coach Little League, and I have never missed any of my children's games."
Yes, I might sound a bit sycophantic (and David, if reading this, would be embarrassed), but you all chose Yale for certain reasons--and Swensens' work underpins ALL of those reasons.
Swensen has had a bigger role in the success of Yale than any other single person ever.
Your article states that faculty salaries are the largest expense, but the figure you gave -- 56% -- is actually for faculty and staff. More accurately, salaries are the largest expense at Yale, as most other organizations.