Valued at $350 million, Yale’s deficit was more than twice that of Princeton, which was pressed to meet a $170 million shortfall.
Though Princeton was able to reduce its deficit to $82 million by the end of the 2010 fiscal year, it, unlike Harvard, had to freeze salaries for a second year.
Princeton has also received criticism for its investment strategy as overly reliant on questionable investment vehicles. In the wake of the crisis, The Daily Princetonian reported that the university was expanding its illiquid private equity holdings, a practice questioned by Princeton alumni as overly risky. Harvard has since moved away from many of those investments.
Harvard faculty members and administrators said that this transition in strategy is only one of many ways in which University leaders have moved quickly to address the University’s financial needs in a way that has not necessarily been seen at peer institutions.
“And I only have admiration that, going forward, the leaders in FAS administration will be able to solve this situation in the best interests of the school,” Simpson said.
—Staff writer Sirui Li contributed to the reporting of this story.
—Staff writer Gautam S. Kumar can be reached at gkumar@college.harvard.edu