Harvard University paid HMC CEO N.P. Narvekar a $5.5 million bonus in 2017 for improving the fortunes of the school’s massive endowment during his first full year on the job.
MSN reported that Narvekar’s compensation package as head of the world’s largest college endowment topped $9.3 million that year, including the bonus, according to tax filings that the university released May 10.
Narvekar earned nearly $1 million in base pay and was reimbursed $2.75 million for money he forfeited at his previous employer when he came to Cambridge to run the Harvard Management Company, the report said.
In addition, the university also reported on its tax filing that it is on the hook to pay Narvekar at least $3.8 million for the next two years as part of his contract deal.
Narvekar has made strides in righting the $39 billion endowment after years of lackluster performance, Harvard treasurer Paul Finnegan said in a statement.
“The turnaround of HMC is a multi-year undertaking and the board of directors was impressed by the progress Narv made in his first year to position the endowment for future success,” Finnegan said.
Harvard relies on the returns from the endowment to finance much of its operations and to fund financial aid to students. But for years, the fund far underperformed rivals. Last year, under Narvekar’s leadership it posted a 10 percent return, which lagged other Ivy League institutions but was the highest for Harvard in four years, the report said.
Since he was hired in 2016, Narvekar has increased its investments in hedge funds, spun off its real estate team, shed some investments in timberland and farms, and turned to outside investment managers, it added.