FLASHBACK-3 YEARS AGO -- STRS Bonuses disclosure despite the utterance of confidentiality

STRS director won’t pocket $40,000 bonus he wanted
Canton Repository, May 19, 2004
By PAUL E. KOSTYU
Copley Columbus Bureau chief

COLUMBUS — Under pressure from lawmakers and members of the State Teachers Retirement System, Executive Director Damon Asbury will not accept a bonus he earlier said was due him for work in fiscal year 2002-03.

The bonus, worth about $40,000, was subtracted from the package Asbury plans to recommend to the pension board Thursday. The bonuses to 370 investment and noninvestment employees will cost the system $3.81 million.

After maintaining for days that the dollar amount for each employee was confidential, the retirement system Tuesday released the names of employees and the bonuses they are receiving.

The list shows that F. Cassandra Hill, a teacher in the system’s child-care center, will receive the smallest bonus, $174. Her 2003 salary is $31,000.

The highest bonus goes to James M. Meeth, director of fixed income and an investment employee, who will receive $79,905, which is more than half of his 2003 salary of $140,020.

Laura Ecklar, a retirement system spokeswoman, said Asbury decided he should not personally benefit from a recommendation he makes to the board. Until Tuesday, Asbury had maintained that he should get the bonus just like all other eligible noninvestment employees. She said she did not know the exact amount of Asbury’s projected bonus because it was not on the list made public.

As deputy executive director for administration in 2001-02, Asbury received $49,728 as a bonus. As executive director, Asbury now makes $189,500 annually.

The bonus program for noninvestment employees was eliminated in the wake of media reports last year about spending on bonuses, artwork, travel and other expenses while the system’s portfolio declined and members’ health-care costs increased.

The program awarding bonuses to investment employees was reinstated but in a modified form. It now ties part of the amount each person receives to the overall performance of the entire retirement system portfolio. In the past, the bonuses were linked to how well the accounts managed by each employee faired.

Asbury said bonuses should be paid to investment and noninvestment employees to avoid potential lawsuits. He made that decision based on advice from Assistant Attorney General John E. Patterson, the attorney for the board. Patterson’s boss, Ohio Attorney General Jim Petro opposes the plan.

Although Asbury’s current contract prevents him from receiving bonuses, that’s not the case for Stephen A. Mitchell, deputy executive director of investments. According to his contract, Mitchell receives a 20 percent bonus if more than half of his staff qualify for one. In Asbury’s plan, Mitchell is budgeted to receive $48,470, based on a July 2003 salary of $242,350.

Most of the highest bonuses went to the investment staff, with some ranging from $30,000 to $60,000. Some noninvestment staff have proposed bonuses in the $10,000 to $30,000 range. Retirement system lobbyist Teresa M. Bierdeman, for example, is scheduled to receive $26,343. Her annual salary is $112,100. Retirement system general counsel Cynthia E. Hvizdos earns $129,120 and will get a $29,052 bonus under Asbury’s plan.

But those pale in comparison to Asbury’s two deputy executive directors, Sandra L. Knoesal, who oversees member benefits, and Robert A. Slater, who is chief financial officer. They will receive $43,324 and $46,573, respectively.

You can reach Copley Columbus Bureau Chief Paul E. Kostyu at (614) 222-8901 or e-mail:

paul.kostyu@cantonrep.com