Men's basketball coach Mike Krzyzewski has been knocked out of another No. 1 ranking.
Dr. Ralph Snyderman, chancellor of health affairs and Duke University Health System president and CEO, ended Krzyzewski's four-year reign as the highest paid University employee for the 2000-2001 fiscal year, according to Internal Revenue Service 990 tax forms released by the University last week.
The release of the forms comes several weeks after the Health System announced it would cut 300 jobs and the same week that the University announced a December 2001 $100,000 gift by Snyderman and his wife to fund a professorship in genomics.
Although Snyderman's $448,456 salary was dwarfed by Krzyzewski's $589,300, Snyderman also received more than $674,000 in his expense account and other allowances, which, along with contributions to his employee benefit plans, brought the DUHS chief's total compensation to $1,156,277.
Senior Vice President for Government Affairs and Public Relations John Burness said the high figure in Snyderman's expense account is the result of both an approximately five-year-old real estate loan that was forgiven by the Executive Board of the Board of Trustees and of incentives granted by a compensation committee in the Health System.
Snyderman, whose total package increased by 90 percent over last year, referred questions to Associate Vice Chancellor of Communications Vicki Saito, who referred questions to Burness.
Burness said the release of the tax forms and the Health System layoffs were unrelated.
"The IRS Form 990 in question was filed for the fiscal year that began July 1, 2000 and ended June 30, 2001," Burness wrote in an e-mail. "The proposed budget reductions that recently were announced are for the fiscal year that begins July 1, 2002 and ends June 30, 2003. The need to eliminate up to 300 positions was made to address next year's budget requirements... and had nothing to do with a compensation plan that was determined more than two years before."
Krzyzewski's salary, benefit plans contributions and expense account totaled $637,216--the third highest package and some $32,000 behind Sallie Shupping-Russell, a former investment manager at Duke University Management Co. Four other executives at DUMAC joined Russell in the top 10, including Thruston Morton, DUMAC president; Eugene McDonald, DUMAC executive vice president for asset Management; David Shumate, DUMAC director of finance and administration; and Susan Carter, another former DUMAC executive.
Most of those salaries were influenced by bonuses DUMAC executives received after posting a 58 percent return on Duke's investments in 1999-2000.
President Nan Keohane did not crack the top 10 with a salary of $410,800 and benefits of $31,635, good for 11th on the list.
The University ended the 2000-2001 fiscal year with net assets of $4.437 billion, including $3.251 billion in investments and securities; revenue of $1.889 billion; and expenses of $1.080 billion. The University lost almost $795 million in net unrealized losses on investments.
The DUHS ended the year with net assets of $852.5 million, $1.227 billion in revenue and $1.245 billion in expenses.
Besides Snyderman, Executive Vice President and Chief Operating Officer William Donelan, Chief Financial Officer Kenneth Morris and outgoing CEO Mike Israel represented DUHS in the top 10.
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