<p>[Harvard</a> managers earn $26.7 million | Reuters](<a href=“Harvard managers earn $26.7 million | Reuters”>Harvard managers earn $26.7 million | Reuters)</p>
<p>Nice to know that no matter how bad things get the HMC folks are sure to get their multimillion dollar pay. You don’t have to be a Harvard MBA to understand that when you compensate people in the way HMC does based on short-term performance against a benchmark that the managers are going to invest in the riskiest, potentially most dubious funds, and certainly in those funds that are “reporting” the hottest returns at the moment. For most experienced investors those are just what you avoid because you always end up with the nightmare that they are now experiencing.
Are the managers paying any price for this-no–most have moved on (knowing full well the damage that was coming Harvard’s way). Awful stuff but it all goes back to the terribly flawed rewards system that was put in place by the Board.</p>