HRE Officials Get 'Astounding' Raises

Administrators at Harvard Real Estate, which manages properties for the University, received pay hikes last year of up to $17,000, according to state tax forms filed recently with the attorney general's division of public charities.

The salary of HRE President Sally Zeckhauser Jumped from $48,637 TO $65,500, Treasurer S. Michael Hawe's pay increased from $38,480 to $49,940; Vice President Robert Silverman earned $31,800 in fiscal year 1980 and $49,300 in fiscal year 1981.

A spokesman for the University said yesterday that in some cases the increases re-suited from expended job responsibilities, in one case from special bonuses, and in another instance from past payment for current and future services.

A leader of the Harvard Tenants Union, Mike Turk, called the salary hikes " astounding," and asserted that the funds might have been better spent by "bringing another building up to code."

Turk said that while HRE officials have in the past blamed a lack of attention to apartment repairs on serious fiscal constraints, the salary increases "reveal how hollow those claims are."

"It seems a classic case of suggesting belt-tightening to those who can least afford it and an extended boat of generousity to those who least need it," he said.

Zeckhauser, for instance, received only $23,823 in fiscal year 1979 Since then her salary has more than doubled.

Silverman received only $19,000 in 1979 and Hawe earned only $7020 that year.

The most recent tax disclosures also show a payment of $3847 for "real estate consulting" to Emfin. Inc., a firm run by a member of HRE's Board of directors, Edward M. Strasser.

HRE's fiscal 1980 tax statement, signed under penalty of perjury, had failed to note the connection between Emfin. Strasser and HRE by indicating that HRE had paid compensation to a "related party."

Daniel Steiner '54, general counsel to the University, last April called that failure an "oversight," and Harvard officials subsequently filed an amendment to the tax forms with the attorney general's office.

The most recent tax statement includes an explanation of the payment to Strasser as a related party. And Public Relations Director David Rosen said recently that the fiscal 1981 payment to Emfin was "the last and final" compensation to the firm from HRE.

"Emfin is no longer retained by HRE," Rosen said, adding that there is no more money owed by HRE to Emfin and "no immediate need" for the kinds of consulting services that the firm provides.

HRE had paid $25.079 in 1979 and $17.426 in 1980 to Emfin.

Zeckhauser said last April that Strasser's two roles as consultant and board member had been "mentioned" internally as a possible "conflict of interest...but never really decided on."

On the HRE salary increase for Zeckhauser, Rosen said that last year's hike "appears to be abnormally high because it includes bonuses" that we paid in the current calendar year and reported in the 1981 fiscal year.

He added that the move than two-fold increase for Zeckhauser over a three-year period is a "faulty comparison" because her 1979 salary represented only four or five months of work on the HRE payroll.

Silverman's salary hike last year stemmed from a change in scope in his job and an increase in responsibilities for property management, Rosen said.

Assistant to the Treasurer Herman M. Anderson, who earned $8010 in 1979, received $43.431 last year. But Rosen said that Anderson's 1981 salary actually reflects a year-and-a-half of work for HRE.

Anderson officially retired last year but was paid an extra half year salary at that time for informal services he is now providing to HRE, Rosen said.

HRE paid total salaries and wages in 1981 of $581.000, an increase of more than $100.000 from the 1980 total of $475.000 as according to a statement--prepared by HRE accountants--which accompanies the public charities tax forms.

The tax disclosures were received by state officials on January 18.

Emfin was incorporated in Delaware in December 1977. According to documents on file last April in the Massachusetts Secretary of State's office, Edward M. Strasser is the president, treasurer, and entire board of directors of Emfin. His wife Francine is listed as the secretary.

Edward Strasser was unavailable for comment yesterday, and he declined to return repeated phone calls made to his Cambridge home last week.

Francine Strasser said yesterday that she does not know what kind of services Emfin provided to HRE last year.

In April, Strasser said he provided "general consulting services," to HRE during the 1980 fiscal year.

Zeckhauser said last April that among other duties Strasser had advised on the installation of thermopane, energy-saving windows at a Trowbridge St. building.

HRE's current installation of thermopane windows at 9-13a Ware St. has spurred tenants to protest the move and consider filing legal action against HRE.

The Ware St. tenants charges that the new more expensive windows will unfairly escalate the level of their rents.

Strasser said last April that he did not consider his HRE consulting services a conflict of interest. He added that "lots of people" organize corporations like Emfin for "tax purposes," a statement that area tax specialists said was accurate.