ivoryYeshiva University, responding to the March faculty vote of “No confidence” in president Richard Joel, said it is working on deficit reduction but needs the help of faculty. Yeshiva critic Steven Weiss of TakePart puts spotlight on high college costs.

"Ivory Tower," a 90-minute film on the escalating cost of college, was produced by Participant Media, parent of the TakePart website, which encourages the public to take “meaningful and immediate action” on socially worthwhile causes.

The film, which aired on Nov. 20, 2014, claims the cost of college “has increased more than any other service in the U.S.” Participant Media is funded by Jeffrey Skoll, former employee and once the second largest stockholder in eBay. His net worth is estimated at $3.8 billion by Wikipdeia.

Weiss, whose 5,928-word analysis of the financial problems of Yeshiva was published June 17, 2014 by TakePart, noted that Joel’s pay package reached $1,271,310 in 2012. This was more than three times the $344,000 pay of predecessor Rabbi Dr. Norman Lamm, who was president 27 years until retiring in 2001. Joel, formerly president of Jewish campus group Hillel, succeeded him in September 2003.

Weiss says that the Joel board in 2003-04 switched investments from “safe” treasury bonds (42% of the total in 2001) to more than 80% “alternative” investments meaning mostly hedge funds. During the first half of 2008, “Yeshiva’s endowment was essentially one large hedge fund,” wrote Weiss for a study conducted over a two-year period and that involved review of 10,000+ documents. "How to Lose $1 Billion," was the title of the Weiss report.

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He says members of the Yeshiva board were involved in investment decisions in violation of Yeshiva’s conflict of interest rules. Ezra Merkin of Ascot Partners, described as a “feeder fund” to Bernard Madoff’s “Ponzi scheme,” was chairman of the Yeshiva investment committee, earning typical hedge fund fees while his firm managed a part of Yeshiva’s investments, says Weiss.

Yeshiva Paid 15 Individuals $11.3M

The 990 Yeshiva tax return for the 2012 year ended June 30, 2013 lists 15 individuals receiving from $2,007,643 at the top down to $372,086 for a total of $11,392,586. Federal tax number is 13-1624225.

Among them is Lamm who received base compensation of $258,844, nontaxable benefits of $244,150, other pay of $6,026, and deferred pay of $4,857 for a total of $513,877. His total pay in the previous year was $483,752 and included base pay of $239,552.

Highest paid in 2012 was VP-development Daniel Forman whose package of $2,007,643 included $653,511 in base pay; $1,343,319 in “other compensation”; $25,956 in nontaxable benefits, and $4,857 in “other” pay.

He was the third highest paid fundraiser among 280 nonprofits in a study published April 20, 2014 by the Chronicle of Philanthropy.

The Chronicle, using 2011 data, had Forman receiving $922,542. It ranked Anne McSweeney of Memorial Sloan Kettering Cancer Center, who raised more than $300M, as the highest paid fundraiser at $1.2 million. In second place was Sue Feagin of Columbia University at $1 million+.

The Chronicle said some nonprofit experts were upset at the size of the pay packages. “You don’t need to take poverty wages but if you’re working for a charity, the idea of fundraisers becoming millionaires is problematic,” said Ken Berger, head of Charity Navigator.

Others Listed in Yeshiva Tax Return

FormanForman

Also listed in IRS Form 990 by Yeshiva were:

Dr. Allen Spiegel, Dean of the Albert Einstein School of Medicine of Yeshiva, $1,350,154 total.

Dr. Victor Schuster, Senior Vice Dean, Einstein, $825,511.

Dr. Irwin Merkatz, $714,891.

Dr. Edward Burns, Executive Dean, Einstein, $679,978.

Andrew Lauer, VP for Legal Affairs, Secretary and General Counsel, $525,413.

Michael Gower, Chief Financial Officer. $500,224. Hired before the Madoff scandal, Gower in 2013 joined Rutgers University as CFO. He was succeeded at Yeshiva by Toby Winer.

Dr. Morton Lowengrub, $481,178.

Ahron Herring, Chief Investment Officer, $476,451.

Rabbi Josh Joseph, VP and Chief of Staff, $372,086.

Full Tuition, Room/Board Is $53,930

Full tuition including all fees, room and board (35th st. facility) is $53,930 for the 2015-16 year.

Tuition is $37,930. Housing is $6,000 and basic meal plan, $3,400.

Some students had joined faculty in seeking better financial management of the school and more information, according to a report March 15, 2015 in the New York Jewish Week. It called the action “an unprecedented step to call attention to the school’s refusal to take responsibility for financial woes.”

Student Yadin Teitz authored a 1,965-word essay for the May 12 edition of The Commentator, student newspaper, in which he described pluses and minuses of student life. He wrote that, “When it comes to undergraduate studies specifically, it is far more to the right than the ideal Modern Orthodox ideology.”

A student told Teitz: “YU is an amazing place for a lot of people. The problem is that it pretends to be good for everyone. The University needs to sit down and decide what it stands for. Right now, it is a right-wing yeshiva with a limited college.”

Yeshiva failed to produce an on-time financial report for the year ended June 30, 2013, releasing instead a draft estimating a deficit of $146 million, reported Bloomberg Jan. 22, 2014. http://tinyurl.com/o8alm39

Board Asks for “Collaboration”

Yeshiva, reacting to the March faculty vote of “no confidence” in Joel, released the following statement March 13.

Message from the Board of Trustees:

You might be aware that a majority of the undergraduate faculty of Yeshiva College who participated in a vote passed a resolution of No Confidence in President Richard Joel. This is an unfortunate development, given the Administration’s work and many meetings with the faculty to develop plans to enhance the quality of the educational experience at YU while saving costs.

While it’s regrettable that a small number of contract faculty will leave the University, we are building an organization and an academic program that creates more flexibility and options for students. Details will be shared soon on ways more of our students can enjoy and benefit from our outstanding scholars, and how smaller programs can be strengthened.

Sometimes change can create concern. But the fact is that change needs to be embraced, and change provides an opportunity to make improvements in our structure, and in the way we support the needs and aspirations of our exceptional students. Change will allow YU to move forward with excellence.

Below is a statement I am sharing on behalf of the Board of Trustees. Thank you for your continued support and commitment to the unique mission of YU.

Dr. Henry Kressel
Chairman
Board of Trustees of Yeshiva University

Statement from the Yeshiva University Board of Trustees

The faculty at Yeshiva University are among the best anywhere. They are at the core of supporting our unique mission, and instilling the values to both learn and live.

What must be clarified, however, is that the Board of Trustees is ultimately responsible for ensuring the University is able to move forward with excellence. This responsibility includes implementing a financial plan to ensure the sustainability of the institution. Under our direction, President Richard Joel, his administration and the Board’s outside advisers, Alvarez & Marsal (A&M), have identified areas across the entire university to streamline and realign operations, while ensuring the student experience remains vibrant. They have performed admirably in a difficult environment.

While important gains have been made, including the proposed investment by the Montefiore Health System in a joint venture concerning the Albert Einstein College of Medicine, we cannot find all of the solutions and meet our deficit reduction goal without the participation of our faculty. We deeply appreciate the important insights and opinions offered by faculty in the course of many meetings, and hope they continue to partner with the University to implement the necessary changes.

The Board is confident that President Joel and his administration will continue to work diligently to strengthen the bonds of collaboration and maintain the focus on the needs of our students, as well as the needs of the University as a whole. This is the best way to ensure YU continues to flourish.