Harvard's top money managers again received record compensation packages in fiscal 1994, a year when the University endowment had an excellent performance. The top earner at the Harvard Management Company (HMC) made more than ten times President Neil L. Rudenstine's salary.

According to information filed with the Internal Revenue Service (IRS) for fiscal 1994, at least six employees earned compensation packages of more than $1 million--a new record which continues a trend of rapidly escalating salaries over recent years.

Harvard's fiscal year runs from July 1 to June 30. For that period last year, HMC earned a 9.8 percent return on the University's endowment, which put it in the top five percent of comparable funds according to the Wilshire cooperative Universe as measured by Wilshire Associates.

Leading the parade was Jonathon S. Jacobson, a vice president who manages the equity portfolio. He made $2,964,965--a 131 percent increase over his previous year's compensation of $1,282,545 and the highest ever at HMC. Sources say Jacobson earned $70 million for HMC on an undisclosed sum of money he was in charge of managing.

Another HMC Vice president, Robert G. Achtinson, who manages the select equity portfolio earned $1,631,811, the second highest pay. Achtinson was not among the top five highest paid HMC employees last year.

HMC President Jack R. Meyer earned a record $1,219,580, Though it was not enough to place him among HMC's top five money mak- ers, it marked a 27 percent increase over hisprevious year's compensation of $962,213.

Rounding out the top five earners were David R.Mittelman, vice president and director of fixedincome investments, who earned $1,409,032; PhillipT. Gross, vice President and Select equityanalyst, who made $1,253,565; and Frank r. Dunau,vice president and select equity management, whowas paid $1,265,461.

Meyer had no comment on the salaries, thecompany's investment strategies or any other issuepertaining to the management company.

Sources in the investment industry say thatwhile the compensation numbers appear low for theMoney management industry, they are High fornon-profit endowment fund managers like HMCemployees.

Sources also said that Meyer's $1.2 million paywas in line with the pay of other heads of moneymanagement firms and actually less than many ofthem earn. However, it is higher than most mangersof non-profit endowment funds, they said.

Before this year, the highest single yearcompensation package in HMC history was the $1.4million Meyer's predecessor Walter M. Cabot '54earned when he received his retirement bonus. Thisyear three managers exceeded that amount.

The majority of the money in the largecompensation packages comes in the form of pay forperformance bonuses, not salary.

According to documents filed with the IRS, thecompany's Incentive Compensation Plan "providesfor incentive payouts based on the returns ofspecific asset classes managed by employeesrelative to a specific benchmark."

Notably absent from the top earners was MichaelEisenson, who runs HMC's high-risk Harvard PrivateCapital (formerly the Aeneas Group). Eisenson hadbeen among the highest paid employees for the pastseveral years.

Also reported were the salaries of VerneSedlacek, treasurer, who earned $771,685, a 36percent raise, and Michael Thomis, clerk, whoearned $238,570, a 45 percent pay cut.

Corporation members who also serve on the boardRobert G. Stone Jr. '45 and Richard A. Smith '46earned $10,000 and $8000 respectively. And BakerProfessor of Business Administration Jay O. Lightearned $5,500.

Among outside directors, Edward Ladd of theinvestment firm Standish, Ayer & Wood Earned$11,000 and Hilda Ochoa-Brillembourg of StrategicInvestment Management earned $7,000.

President Neil L. Rudenstine and UniversityTreasurer D. Ronald Daniel received nocompensation for serving on the board.

Though the first three quarters of the fiscalyear which ends June 30, the University'sapproximately $6 billion endowment had grown 11percent, according to a source.

While the endowment's absolute return is betterthan last year's, financial markets have performedbetter this year and relatively, its performanceis not so good.

According to the Wilshire Associates, asmeasured by the appropriate section of theWilshire Cooperative Universe, the performanceranked in the top quartile of funds, though not inthe top 5 percent.

Last year the endowment grew by 9.8 percent andsignificantly outperformed the benchmark Standardand Poor's 500 Index by about eight points.

According to a source in the investmentindustry, however, if the return to the presentday was 11 percent it would be "extremely poor"because the stock market has increaseddramatically since March 31.

As a result, it is likely that the University'sreturns are higher to the present day, but thatinformation will not be known until after the endof the fiscal year on June 30.

Although the performance of the different assetclasses within the endowment fund are notreleased, a source close to the management companysaid that the Harvard Private Capital's return hadbeen in the middle teens through a date sometimein the middle of the present quarter