Harvard Won't Fire President Because of 'Racist' Fears: Ackman Says

Bill Ackman, founder and CEO of hedge fund management company Pershing Square Holdings, has publicly criticized the Harvard Corporation board for its unanimous support of Harvard President Claudine Gay, amid increasing calls for her to resign.

In a long-form tweet on Wednesday, Ackman clearly defined his disbelief in the board members' backing of Gay, suggesting their fear of being labeled as racists is preventing them from taking action.

"The principal reason I believe is that they are afraid of being called racists," Ackman said, adding that the Harvard Corporation board "concluded that if they fired President Gay, Harvard's first black president, they would be cancelled and deemed racists."

In the wake of the October 7 Hamas attack on Israel, in which more than 1,200 Israelis were killed, and Israel's subsequent invasion of Gaza in which more than 20,000 Palestinians have been killed, according to the Associated Press, U.S. universities, including Harvard, have witnessed a wave of pro-Palestinian protests.

The demonstrations have sometimes been perceived as antisemitic, Newsweek previously reported, contributing to a sense of unease among Jewish students. At Harvard, more than 30 student groups have explicitly blamed Israel for the violence, intensifying campus tensions and debates over free speech and campus safety.

Who Is Bill Ackman?

Ackman's deep involvement with Harvard stems from his personal and professional ties to the university. Ackman, of Ashkenazi Jewish descent and an alumnus of Harvard College and Harvard Business School, has been a significant donor to the university, gifting millions to the Ivy League school in exchange for a say in administrative matters, according to a Wall Street Journal report.

His relationship with Harvard, however, has been marked by both financial generosity and contentious disputes.

Ackman's net worth, estimated at $3.8 billion by Forbes, places him among the wealthiest alumni, and he has historically used his fortune to influence and contribute to various causes and institutions. In 2014, Ackman and his former wife expanded Harvard's economics department with a $25 million donation. More recently, he supported the university's rowing team, which he joined as an undergraduate.

However, Ackman's relationship with Harvard has been strained in recent years. An incident occurred in 2017 in which Ackman donated funds to the school for recruiting top economists, including Stanford University's Raj Chetty. The donation, which was given in a company's stock and came with caveats, led to a dispute when Harvard Management sold the shares before they had a chance to appreciate in value—a decision Ackman wasn't consulted on and which he publicly criticized.

Ackman's current frustration with the board's inertia was evident in his Tweet on Wednesday, as he detailed his attempts to intervene and offer help.

"When I first watched the train wreck begin to unfold at Harvard, I approached two friends on the Corporation board and requested a meeting with President Gay and the other directors as I thought I could help," Ackman said. His requests were repeatedly ignored, and he said that when he had the chance to speak with board chair Penny Pritzker, he found the conversation "incredibly disappointing" and unproductive.

Newsweek has reached out to Pershing Square Holdings via email for comment.

The billionaire's comments come in the wake of Dr. Gay's contentious testimony before Congress earlier this month, which has intensified pressure on her leadership. Dr. Gay, 53, faced criticism for not clearly stating whether students advocating the genocide of Jewish people would face disciplinary action, which sparked a debate over free speech and antisemitism on campus, further complicating the university's stance.

Dr. Gay condemned the atrocities committed by Hamas, however, her statements and the university's broader response have been subject to criticism and controversy, particularly in light of the broader national conversation about university governance and ensuring student safety.

According to Ackman, the Harvard Corporation board "failed to act out of fear," resulting in deteriorating reputations for the board members and material damage to the Black community at Harvard. "By not acting to fire Gay for transgressions for which no other previous president of Harvard, administrator or faculty member would survive, they are telling the world that lower standards apply to black people at Harvard," he said.

Ackman, along with other critics, including former Harvard President Larry Summers, condemned what they perceived as the university's inadequate response to antisemitism and threats against Jewish students on campus.

The situation at Harvard is part of a broader discussion on university governance and the influence of donors and alumni.

Update 12/22/23 12:39 p.m. ET: This story has been updated with additional information.