Harvard Names Business Professor to Manage Endowment

As the search continues for a permanent replacement to outgoing Harvard Management Company President Mohamed A. El-Erian, the University announced Friday that a temporary head will come from its own ranks.

Harvard Business School professor Robert Kaplan will become the interim CEO of the group responsible for investing Harvard's endowment beginning Nov. 12, Harvard said in a statement Friday.

Kaplan earned his M.B.A. from the Business School in 1983 and later served as vice-chairman of Goldman Sachs, where he currently serves as a senior director. He also teaches classes on management practice at HBS, is founding co-chair of Harvard's NeuroDiscovery Center, and serves on the boards of Harvard Medical School and the Jewish Theological Seminary.

El-Erian, who has led HMC for almost two years, said in September that he would step down at the end of this year to co-head his former company, PIMCO. According to University spokesman John D. Longbrake, Kaplan's early start will "ensure a smooth transition while Kaplan completes his teaching responsibilities this semester."

El-Erian took the helm of HMC after the departure of Jack R. Meyer and more than 30 other HMC employees in late 2005. In fiscal year 2007, El-Erian's only full year as HMC president, Harvard's investments earned returns of 23 percent.

Appointing an interim CEO two months into the search process could be an indication that the search committee–comprised of the twelve members of HMC's Board of Directors–is concerned about finding a full-time replacement before El-Erian departs.

The previous search took 10 months before El-Erian was selected. Members of the board have declined to comment on the state of the search because it is still ongoing.

--Check thecrimson.com throughout the weekend for updates.
--Staff writer Nathan C. Strauss can be reached at strauss@fas.harvard.edu.