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Monday september 15, 2014 vol. cxxxviii no. 70
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U N I V E R S I T Y A F FA I R S
PRINCO heads lead in compensation
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Announcement The Daily Princetonian will be hosting open houses at 48 University Place from 7 p.m. today, tomorrow and on Wednesday.
By Anna Windemuth
In Opinion
staff writer
The Editorial Board discusses transparency in the investigatory procedures of the Honor Committee and Committee on Discipline, and Cameron Langford argues that the right to privacy is not upheld for women. PAGE 4
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Today on Campus All day: Campus Rec sponsors a week of Group Fitness and Instructional classes, free to students, faculty, and members. Dillon Gymnasium and other locations.
The Archives
Sept. 15, 1966 The Pyne Administration building is reopened as East Pyne Hall, home to the departments of the Romance, Germanic and Slavic languages and the classics department.
News & Notes Bomb threat at CVS currently under investigation
Police are currently investigating a reported bomb threat at the CVS Pharmacy on Nassau Street that occurred Friday evening. The Princeton Police Department responded at 7:55 p.m. to a report that a store employee had received a phone call from an unknown male caller. The caller allegedly said that a package containing explosives had been placed inside of the store. The building, which included both the store and above-store apartment units, was subsequently evacuated and the surrounding area was closed to pedestrian travel. Police patrols and the Mercer County Sheriff Department Bomb Unit searched the store and the apartment units. However, no suspicious packages were found. There were no reported injuries, and vehicular traffic was uninterrupted. In addition to PPD and the Bomb Unit, the Princeton Fire Department and Princeton First Aid and Rescue Squad also responded to the scene. See NOTES page 5
LIN KING :: CONTRIBUTING PHOTOGRAPHER
Schoolboy Q, who, along with Angel Haze, headined Fall Lawnparties 2014, performed many of his hits, including “Studio” and “Collard Greens,” and also covered Kendrick Lamar’s “m.A.A.d. city.” U N I V E R S I T Y A F FA I R S
U. issues email advisory in response to Ebola outbreak By Durva Trivedi staff writer
The University will not support undergraduate or graduate student travel to Guinea, Liberia, Nigeria or Sierra Leone due to the recent outbreak of Ebola in the region, and those who have recently traveled to the region must report to University Health Services. The updated information was announced in a Sept.
5 administrative email following a similar warning issued by the Centers for Disease Control and Prevention. In her email to students, Dean of the College Valerie Smith asked all students, faculty and staff who have recently traveled to the areas of West Africa where the Ebola virus outbreak is occurring to contact UHS or the CDC. Johnson outlined the symptoms of the disease,
described as serious and often fatal, and urged students and faculty to communicate as much as possible with UHS and the CDC in the case of recent travel to West Africa. “The decision was made out of an abundance of caution,” CDC spokesman Jason McDonald explained. “The outbreak there is pretty severe. It’s the largest outbreak of Ebola ever, and it’s See EBOLA page 3
Director of CPS Calvin Chin explained that the change was made due to concerns within CPS that students who need counseling service might not be able to schedule appointments during normal business hours because of conflicting schedules. “We’re hoping that by increasing our availability and increasing our access that we can reach out to more students
and that students will find it easier to meet with us if they need our services,” Chin said. Chin explained that CPS has been paying attention to the ongoing, active discussion about mental health on campus, and has been constantly seeking ways to improve its services. The University is currently being sued by a student who claims that he was forced
The base compensations of the University’s two top chief investment executives, Andrew Golden and Jonathan Erickson, both went up by just over 5 percent last fiscal year, maintaining the executives’ positions as the two highest-paid University employees. Golden’s base compensation was $737,476, while Erickson earned $608,976, according to the University’s most recent 990 form, a public document that includes financial details of nonprofit organizations. Golden’s cited bonus and incentive compensation stands at $1,214,274, a 48 percent increase from last year. His retirement and other deferred compensation was $912,724, a 94 percent increase from last year. The University’s compensation agreement is set up to align the interests of the University and the Princeton Investment Company staff, focusing on long-term, multiyear results while discouraging undue risk taking, Golden said. The compensation framework provides incentives to focus on the long term by basing bonus awards on the endowment’s performance over trailing three- and five-year periods, he explained. However, Golden said that the vast majority of the bonus awards cited in any given year are deferred, and must vest before they are paid out three to five years after they are first determined. When the award vests, the employee is legally entitled to the money, but is not necessarily paid this amount in salary said Marcus Owens, a tax lawyer with Caplin & Drysdale and a former director of the Exempt Organizations division of the Internal Revenue Service . Also, during that time, the awards are at risk because they are retroactively diminished if the endowment suffers losses and retroactively increased if the endowment has gains, Golden added. Therefore, Golden said, his compensation in any given year is influenced by the endowment’s investment performance in each of the preceding 10 years. This type of agreement is common at nonprofits to incentivize employees to stay longer, as they do not gain access to the funds unless they maintain their performance, Owens said. This type of arrangement is sometimes called “golden handcuffs,” he noted. “My compensation remains sig-
nificantly below what it was precrisis,” Golden said, adding that because the bonus system focuses on multi-year periods, the endowment’s losses during the financial crisis in 2008 have continued to dampen compensation. Although the endowment has now recovered and stands at a higher market value than its precrisis peak, Golden said, the system is designed so that any losses experienced by the University diminish his compensation substantially. Golden said he thinks this structure is fair, well-designed and unlike many Wall Street compensation systems. “For the most recent 990, the headline number reported for my compensation double counts about $1 million,” he said, a misstatement that indicates an annual salary of approximately $2 million. While analyzing a series of consecutive 990 forms may provide a general idea of how much compensation the top earners of a university are receiving, a concrete value is always hard to estimate, Owens said. Not only are the fiscal year and the academic year not in unison, but compensation packages often feature deferred funds that take into account the endowment’s long-term returns and other variable factors. Since the University’s bonus agreement rests on long-term results, compensation values may experience spikes from one year to the next, Owens said. In the fiscal year of 2009, for example, Golden’s base compensation was $671,240, his incentive compensation was $1,290,626 and his deferred compensation was $484,686. Adding nontaxable and other benefits, his compensation amounted to $2,549,323. The very next year, this total was $1,458,774, a sudden 43 percent decrease. A similar pattern of jumps is seen in his retirement and other deferred payments, which went down by 66 percent between fiscal years 2009 and 2010, but then increased significantly in 2013. “You really don’t know how much compensation is involved until it vests,” Owens said, adding that compensation can suddenly bounce up in a given year because it vested but that his amount is not necessarily paid out. The two highest-paid endowment executives at Harvard University reported total earnings of $6.6 million and $6.2 million, while Yale University’s top two executives See EXECUTIVES page 2
STUDENT LIFE
Former U. presidents CPS extends service hours, plans Shapiro ’64, Tilghman partnerships with campus groups lead freshman seminars U N I V E R S I T Y A F FA I R S
By Do-Hyeong Myeong staff writer
The service hours for Counseling and Psychological Services have been extended for Mondays and Wednesdays as of Sept. 8 in an effort to increase availability and access to students. Students will now be able to make an appointment with CPS until 7 p.m. on both days.
See CPS page 5
By Konadu Amoakuh staff writer
Two former University presidents — Harold Shapiro ’64 and Shirley Tilghman — as well as former Harvard University president Neil Rudenstine ’56 are all teaching freshman seminars this academic year. Shapiro, who served as
president of the University from 1988 to 2001, is teaching FRS 159: Science, Technology, and Public Policy. He explained that his freshman seminar focuses on topics such as cloning, energy, climate or assistive reproductive technology and exploring the implications for public policy these technoloSee FRS page 4