$2.3 million wasn't enough to keep him

Earlier we commented on Harvard's eye-popping 23% return for its endowment funds last year. The top manager behind that investment success, Mohammed El-Erian, will be leaving after just a year and a half on the job, reports The Wall Street Journal. El-Erian took the helm of Harvard Management Co. after Harvard alumni groused about the "extravagent" pay packages of his predecessors (reportedly as much as $35 million in annual performance bonuses).

Harvard's endowment grew by $6.7 billion in 2007 (of which $1.1 billion was transferred to the University for its operations). If it were a hedge fund on the 2 and 20 plan, the endowment would have incurred investment management expense of about $1.9 billion, by my reckoning. El-Erian was paid $2.3 million for his services. Quite a bargain.

El-Erian now goes to Pimco, where he will be the heir apparent to Bill Gross. No word on his new pay package.