Tuesday, September 11, 2007

Another one bites the dust

The president of Harvard Management Co., which manages the world's largest university endowment, plans to leave the job at the end of the year, the university said today.

Mohamed El-Erian, who came to Harvard Management in 2006, plans to return to the firm where he had worked previously, Pacific Investment Management Co., or PIMCO.

El-Erian arrived at Harvard to succeed Jack Meyer, the longtime Harvard Management president who had resigned along with many of his top investment managers to launch a new hedge fund. He spent much of his tenure hiring a new team of senior managers.

Meyer and his managers had become controversial in some Harvard circles because a compensation system designed to reward superior performance was paying a few people as much as $18 million a year.

When he arrived, El-Erian said he would not abolish Harvard Management's performance-oriented compensation plan, but top salaries for the 2006 fiscal year paled in comparison to earlier periods.
--Steve Syre, Boston Globe, on swift departures that accompany being paid a below-market salary

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