Molly Janczyk re: PBIs

From Molly Janczyk, November 13, 2008
(Response to Dorothy Rezabek)
Subject: FW: PBIs given to STRS Investment Associates

Personal note: Again, I do not fault STRS investors for this market crisis. In bad times, earnings drop and money is lost by all. I fault the size of bonuses in this time of shareholders struggle to pay to maintain their lives and who give up meds and medical treatments to survive. It is NOT a time for extravagance and those who earned, should get merits proportionate with earnings or benchmarks consistent with prudent and sensitive decisions. If earnings were .05%, then , make bonuses reflect that. If losses resulted but much less than expected, reflect that. We would expect to see not holding onto losing investments for many years waiting for the market to go up. Many analysts feel this market may never see gains like we enjoyed. Our investment staff did overwhelming jobs in good times. Easier to do, of course, but they outperformed other pension systems. Now, is the challenge to keep us healthy in spite of this crisis. That shows talent and needs to be recognized with reasonable and sensitive merits. If an investor shows poor judgement and investments, no gain.

Let's simply get real, here. Times have changed. Entitlement is history. Prudence and long term vision welcomed but not by holding onto investments simply not to miss the rise. The rise is predicted too long off. Shifting and reinvesting later in better times is in order. I am simplistic as that is all I understand and know and of course STRS is far better suited to this. Point is: appearance is everything to shareholders.