Hey guys -- we're not allowed to call them 'bonuses' any more. PBI...PBI...PBI

From Donna Seaman, November 19, 2008
Subject: Nov. 20 board mtg.

Board and Mr. Nehf:

Mr. Nehf spoke to members of CORE last Thursday and explained carefully and completely that the performance based incentives (we are not to call them "bonuses!") are contracted salary packages for investment staff. These pbi's were instituted by the STRS board several years ago, and can be changed, modified, removed only by the board, he reported to us.

I continue to request that you, the board, review, change, modify and/or remove the performance benefit incentive policy from the investment staff's salary package. The incentives are totally inappropriate, whether or not they are considered "industry standard practice," especially so in this time of several economic downturn and portfolio losses. This issue must be addressed and discussed openly.

You, board members, need to know you have hired an executive director who says he wants to hear retirees' concerns, but he became very defensive and hostile at the CORE meeting last week when he heard any number of angry, frustrated members expressing concerns such as past issues with the expensive building and art work, and current issues such as "bonuses," health insurance coverage, and the reinstatement of the 13th check.

Look at what is happening with regards to Wall Street executives and their excessive incentives. Most are losing them, or losing their jobs, or both! Discussions are taking place at this moment in Washington: If bailouts are given to the automotive industry, limiting or eliminating executive bonuses might be part of that bailout package.

I look forward to hearing these vitally important issues being discussed at tomorrow's STRS board meeting. Thank you.

Donna Seaman, 2002 retiree (These views are my own and not CORE's.)