STRS PBI Bonuses

From John Curry, February 7, 2009
Subject: STRS PBI Bonuses

Thanks to an active teacher candidate for STRS Board (James Stoll) for asking....... we now have this detailed list of the now-famous (and, thanks to Dr. Leone) "now-quashed" STRS investment associate's bonuses. Pretty handsome, I'd say!

John ("STRS Articles Portfolio Mgr."....!)

Note...Mr. Stoll is the gentleman who furnished the list of PBI bonuses in the email that I just distributed. HE is one "active" who really does know what is going on at STRS! John

From James A. Stoll
January 13, 2009

State Teachers’ Retirement Board (STRS)
Nominating Petition for James A. Stoll

Dear Colleague:

• Did you know that our STRS Retirement Fund lost over Six Billion dollars of its value? $6,098,021,000 in the fiscal year ending June, 2008.

• Did you know, unfortunately for us, that between June 30, 2008 and December 31, 2008, STRS has LOST 18 BILLION dollars in net assets and these net assets have gone from approximately 70.4 Billion on June 30, 2008 to 52.5 Billion on December 31, 2008 per Laura Ecklar, Director of Communications, STRS.

• Did you know that the STRS Board employs more than 87 investment associates to manage your money?

• Did you know that in spite of our retirement fund losing Six Billion dollars last year and approximately 18 Billion so far this year? Eighty-seven investment associates received “Performance Bonuses” of approximately Six Million dollars? That’s an average bonus of nearly $72,000 per associate.

• Did you know that some investment associates received bonuses in EXCESS of $200,000 in spite of decline in net assets of more than Six Billion dollars?

• Did you know that the top two investment associates had total compensation last year of over $500,000 – Yes, that’s over a half million dollars in salary and bonus to manage your money!

Please see the attached spreadsheet which details the title for each associate, their annual salary, their 2008 bonus, and their total compensation for 2008. [This is posted immediately below in five parts; click on each to enlarge.] In my opinion, the salary and bonus figures are outrageous. At an absolute minimum, this data should at least raise some serious questions to which we deserve some answers. For instance, what are these investment associates’ qualifications and job duties? What are the terms of the bonus plan that would entitle individuals to such hefty bonuses, despite what appears to be a horrendous performance? Do changes need to be made to better protect our hard-earned money to ensure that it will be there, as expected, for our retirements? It seems ludicrous, in my opinion, that there are 66 “Investment Associates” with STRS that were paid between $140,000 and $529,200 (which is more than almost all Superintendents of School Districts in Ohio).

If you agree, that the time has come for us to receive answers to our questions and an explanation of how our money is being spent, please support my nomination by signing the enclosed nomination petition. I will work to CHANGE this compensation package as a member of the STRS Board.

Thank you for your time in reviewing these materials, reflecting upon their significance, and considering my interest in representing you as a member of the STRS Board.

James A. Stoll