May 24, 2012 - Jim Stoll to board member Bob Stein re: PBI bonus raises motion passed at April 2012 STRS board meeting

Jim Stoll to Bob Stein, May 24, 2012

Bob, The stated purpose in the [April 2012] Board minutes for this change [to increase bonuses to 100% for certain investment personnel in some cases] "designed to attract, retain, motivate, and reward above-average investment talent." I would be interested - of the 80 + investment associates eligible for the PBI plan how many people have resigned or left their positions in the last three years? My guess is "NOT MANY" and they have known the Board's policy was "NO" bonuses in negative return years. Do you have a number of how much turnover, if any, there has been in those positions??

The Board "Railroaded" this vote through.... I was personally told by Nick Treneff in a phone conversation that there wasn't any change proposed for the PBI plan this year (in January) or I would have run for the Board against Tim Myers, and in writing by Craig Brooks below that there would no change in this fiscal year.... This is really BAD policy to make that change to PBI's while the dramatic changes in reductions of benefits are being proposed for members.

Quite frankly --- you folks have your heads in the sand or worse...... The performance of your "crack" investment staff has trailed almost all other Ohio Retirement Systems in the recent past.

Additionally, I don't recall reading about this Policy Change in any of your E News but could be mistaken..?? Is STRS and the Board trying to hide this from Members....

Jim Stoll

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Craig Brooks to Jim Stoll, January 27, 2012
Subject: Re: STRS Investment Staff Bonuses
Date: Friday, January 27, 2012

Jim:

The Benefit committee met two days ago and recommended no change for this fiscal year, meaning no bonuses paid, for years where there is a negative absolute return for Fund!

Craig