Molly Janczyk: Compassion and sensitivity are in order

From Molly Janczyk, November 13, 2008
Subject: RE: Investments

The point is that during times of crisis, we understand that money will be lost. However, moving monies protects much of that. STRS has a complicated portfolio and did move some monies. But, in a crash scenario, moving most to safe havens at least keeps the losses less. I understand, if you are not there for the rise, you lose earnings but in volatile times, seems more prudent to stay safe in money markets, and safe areas where guarantees of small gains are made: shorter term CD's and bonds, etc. When the rise seems stable, jump back in. Some short term fixed funds do require a 3 mo staying period. Doesn't seem this market is going for a soar before that or much longer.

I don't want anyone to misunderstand my understanding that about investors. If the investors still earned, great! But, in times of crisis when shareholders are suffering, it is sensitive to downsize bonuses. Even WALL ST is reconsidering its bonus structure in such times. The 90's are over. We may never see such a time again. Extravagant, oversized bonus structures need revisiting, as much of even corporate America is doing.

I do NOT fault the investors, I question those who decide such lavishness is still in order when shareholders are again taking the hit with 2009 HC increases, costs at the grocery store, etc. and 3% COLAS which never change to meet inflation.

Our investors did a stellar job and were recognized nationally for their incredible gains for us. I am sure they are just as good during bad times and did lose less for us. BUT, APPEARANCE IS EVERYTHING TO SHAREHOLDERS! Compassion and sensitivity are in order.

Mayor Coleman refused his raise. Doesn't mean he didn't earn it. Means, he is setting an example and being sensitive to his constituents. Wall St., Corporate America and many businesses are revisiting bonus structure during these times. I hope when STRS does so, it will do so with complete open minded prudence and solely on behalf of shareholders showing some sensitivity during this crisis.

From John Decker, November 13, 2008
Subject: Re: FW: Investments

Molly:

Excellent letter by Monica with very good comparisons. Many of us are concerned/worried about the leadership at STRS. Dennis and John Lazarus uncovered many inappropriate expenditures and unfortunately, it is not getting any better. All I can say is - GREED!!