Ivy League Fortune: Harvard's Highest-Paid Money Managers

The transcript discusses a McKinsey study on endowment benchmarks, highlighting Harvard's underperformance despite claiming to meet benchmarks. It reveals how lower benchmarks led to higher compensation for managers, causing controversy. The transcript also covers future changes at Harvard with new leadership aiming to address these issues.

What was a key finding of the McKinsey study regarding Harvard's endowment performance?

• Harvard's endowment was the smallest in higher education.

• Harvard's benchmarks were set lower than its peers.

• Harvard consistently outperformed Yale and Princeton.

• Harvard's endowment had no alternative assets.

Why was there controversy over compensation at Harvard Management Company?

• Bonuses were not linked to performance.

• Lower benchmarks led to higher bonuses.

• Compensation was based on high benchmarks.

• Compensation was lower than industry standards.

What changes are being made at Harvard following the report?

• Eliminating alternative assets.

• Changing compensation and benchmarks.

• Maintaining the same benchmarks.

• Increasing the number of employees.

Who is expected to bring significant changes to Harvard's endowment management?

• The former CEO of Harvard Management.

• The head of Yale's endowment.

• A consultant from McKinsey.

• The new CEO from Columbia's endowment.

What is the main concern among Harvard Management employees regarding the new leadership?

• The new leader will increase the team size.

• The new leader will maintain the status quo.

• The new leader will reduce compensation.

• The new leader will implement drastic changes.