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