Jim Stoll to Mike Nehf and STRS Board: It's time to end the bonus program

From Jim Stoll, September 18, 2009
Subject: Performance Based Incentives - STRS

Dear Mr. Nehf and STRS Board:

Many Thanks to Steve Wartenberg of the Columbus Dispatch for presenting to all STRS members (Active and Retired) the proposed motion on PBI's for investment staff that may be voted on for Friday. (See Attached)

Unfortunately, it is another clear example of the lack of leadership and mismanagement by the STRS Board and its Executive Director.

First, a bonus is a bonus, whether delayed to a later date, or paid now. The performance for this year was simply horrendous (18 Billion Dollar Loss - which has forced drastic changes to the Pension of hundreds of thousands of Teachers!) by any standard, there shouldn't be any Bonuses paid for this, period. If the Board and Executive Director hasn't heard this from the people whom they are Fiduciaries too, then they simply have their head in the sand and should be sued by the Class. (Their Membership). I certainly hope for their sake that "no promises were made to employees" regarding this issue, as Mr. Myers was quoted as saying in a Columbus Dispatch article (I believe January 2009), as this would be a clear violation of Board Policy and in my opinion a Breach of Fiduciary Duty.

Secondly, how ridiculous is it to put in the proposed motion that "The Board Waives The Requirement That The Associate be Employed by STRS Ohio On The Date of Either of The Two Payments....."

Are you kidding me?? It's called an "Incentive"! Its designed to keep and retain the employee! Why wouldn't you want to create an incentive for those "brilliant minds" that Mr. Nehf refers to stick around, if they are truly as valuable as Nehf claims they are? If its supposed to be an INCENTIVE payment --- why in the world would you pay that out to someone who's no longer employed. Makes absolutely no sense to me!!

So, if the employee leaves - we're going to pay them anyway?! This is unbelievable - that we would spend or give a bonus of over $162,000 to someone who is no longer employed by STRS, for a Performance which devastated the system and lagged all other five ohio pension systems for the year in question. The person who thought up this proposed motion should be FIRED -immediately...... I certainly don't pay thousands of my retirement dollars into the System every year for this kind of thinking.

STRS Board - it is time to end this nonsense. The only solution, which we've been telling you for a year now is simply to terminate this bonus program which you've recognized as extremely flawed by changing it several times since January.

Jim Stoll Director of Athletics
Sycamore High School
7400 Cornell Rd.
Cincinnati, Ohio 45242
513-686-1770 ext.3210