What’s interesting about this is not the limit to outside compensation (a  $5000 per day limit!), but how bad the conflicts have gotten. For a broader analysis of this, check out Beatrice Golomb’s research e.g. a talk she gave.

Harvard Teaching Hospitals Cap Outside Pay

By DUFF WILSON

Published: January 2, 2010

The owner of two research hospitals affiliated with the Harvard Medical School has imposed restrictions on outside pay for two dozen senior officials who also sit on the boards of pharmaceutical or biotechnology companies. The limits come in the wake of growing criticism of the ties between industry and academia.

Medical experts say they believe the conflict-of-interest rules at the institution, Partners HealthCare, go further than those of any other academic medical center in restricting outside pay from drug companies. The rules, which became effective on Friday, impose limits specifically on outside directors who guide some of the nation’s biggest companies.

via Harvard Teaching Hospitals Cap Outside Pay to Top Officials – NYTimes.com.