08-06-2021, 02:23 PM
The endowment payout is smoothed out to account for ups and downs in the market. Like, if the market were to ever go down (it happens, you know), it's not like there would be no payout. Typically, the payout is about 5% of the value of the endowment, so to support a $6 million base salary, the endowment principle would have to be $120 million. (narrator: the actual endowment is not $120 million). The endowment doesn't pay all of Shaw's salary, and it certainly isn't paying $6 million a year.
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