Some media reported that a fund manager at Harvards endowment earned more than $US25MM in bonus, how can that be?
Harvard Capital Management is a very large endowment fund. It has close to $US22BN in assets under management (AUM) and had a return of 21%. Many call this a hedge fund and that it is the biggest in the world. In order to keep very talented managers at HCM, they pay top people top performance bonuses. The salary base for these people is often low 15-20MM yen base. However, there is no limit to the bonus upside and yes, two HCM managers did earn more than US$25MM in bonuses in 2004. A growing amount of Japanese universities are now considering copying this US model. In future, more government guidance is expected when the pension fund industry is allowed to act more independently.
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- Some media reported that a fund manager at Harvards endowment earned more than $US25MM in bonus, how can that be?
