Harvard University's president says he is taking a voluntary 25% pay cut, though the university isn't saying what he makes or how much he is giving up.
Garber, who was previously provost and interim-president, made $922,068, plus other compensation of $242,968 during calendar year 2023, according to Harvard Magazine.
This isn’t the first time Garber has claimed to take a 25% pay cut. In 2020, he signed a letter claiming he and other administrators would be taking a 25% pay cut amid financial challenges caused by the coronavirus pandemic.
According to financial records, Garber’s fiscal year 2020 pay was $825,670 — 86% of the previous year’s pay of $955,759.
I don’t know how compensation works in academic administration, but if there’s any vesting going on then you could “take a pay cut” but end up making more due to previous compensation vesting.
Certainly possible for public companies, but again, unsure if that could be the case for a university president…
Vesting generally requires there to be some asset you become entitled to. In private companies that’s stock, but Harvard is a non-profit (and a school) so I don’t think they have any equivelant.
Looking online, it does seem likely there are bonuses and other forms of compensation. But I think agreeing to take a pay cut is him trying to do right, or at least indicate that he’s willing to take a hit too.
I don’t know how compensation works in academic administration, but if there’s any vesting going on then you could “take a pay cut” but end up making more due to previous compensation vesting.
Certainly possible for public companies, but again, unsure if that could be the case for a university president…
Vesting generally requires there to be some asset you become entitled to. In private companies that’s stock, but Harvard is a non-profit (and a school) so I don’t think they have any equivelant.
Looking online, it does seem likely there are bonuses and other forms of compensation. But I think agreeing to take a pay cut is him trying to do right, or at least indicate that he’s willing to take a hit too.
I have no idea and feel media should give more context when they quote like that.