Steven M. Davidoff writing for Deal Book uses Harvard as an example to look at the implications of endowment losses.
To paraphrase “Top Gun,” “their mouths were writing checks their brains couldn’t cash.” Universities expanded rapidly during the past few years on the basis of endowment growth. But not only is that growth gone and endowments fallen, the numbers may be far worse because of how much these entities depend on private equity.Economix notes an uptick in the number of people taking the GMAT and LSAT.
With the news that CEO pay in financial firms is capped, Clarence R. Deitsch and T. Norman Van Cott of the Pope Center ask
If there is good reason to prevent tax dollars from finding their way into supposedly excessive bank CEO salaries, what about the salaries of their college and university counterparts?HT: Tigerhawk and McArdle
1 comment:
Aside from the unsubstantiated potshots at college presidents, the proposal leaves out the consideration that the banks have had to beg for tens or hundreds of billions in bailout money in a de facto nationalization.
If these guys really want to apply their principle consistently, how about a $500K compensation cap for CEOs of all corporations that do business with the federal government?
While we're at it, a cap for private "think tanks" that receive government subsidies through tax deductions?
Or since these think tanks typically are an order of magnitude smaller (in budget, annual giving, etc.) than large universities, how about a proportionate cap?
Say, $50K for the presidents of Heritage, AEI, Brookings, the Intercollegiate Studies Institute, etc.?
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