Bill Neville's contract: Executive Employment Agreement plus two amendments

 

STRS 20210618

First Amendment to Executive Employment Agreement

between State Teachers Retirement System of Ohio

and William J. Neville

This First Amendment to the Executive Employment Agreement between the State Teachers Retirement System

of Ohio ("STRS Ohio") and William J. Neville ("Neville"), (the "First Amendment"), is entered into this 21st

day of June 2021. Capitalized terms used herein and not otherwise defined shall have the respective meanings

assigned to such terms in the Executive Employment Agreement.

WITNESSETH

WHEREAS, STRS Ohio and Neville are parties to a certain Executive Employment Agreement dated June 26,

2020;and

WHEREAS, the Agreement provides that Neville's term of employment with STRS Ohio shall be July 1, 2020

through June 30, 2025, which the Agreement defines as the Initial Term; and

WHEREAS, the Agreement further provides that Neville's employment may be extended as approved by the

Board; and

WHEREAS, the Board wishes to extend Neville's employment through June 30, 2026; and

WHEREAS, the Agreement further provides that the Board may increase Neville's base salary and other

benefits in such amounts and to such extent that the Board may determine in its sole discretion is desirable on

the basis of Neville's annual performance and salary review; and

WHEREAS, on or about June 17, 2021, the Board approved said extension and an increase in base salary, and

further authorized the Board Chair to execute this First Amendment to memorialize the amendments,

NOW THEREFORE, in consideration of the continued performance of the Agreement, and the consideration,

mutual promises and agreements set forth herein, STRS Ohio and Neville agree to hereby amend the Agreement

as follows:

1. Section 1 (Employment) of the Agreement shall be deleted in its entirety and replaced with the

following:

"STRS Ohio hereby employs Neville, and Neville hereby accepts employment as Executive

Director, upon all of the terms and conditions hereof. The term of employment shall be for a six

(6) year term commencing as of July 1, 2020 and terminating as of June 30, 2026 (the "Initial

Term"), unless extended as provided herein. This Agreement and the employment provided for

herein may be extended as approved by the Board and signed by both the Chair of the Board and

Neville (the "Renewal Term"). Either party may terminate this Agreement in accordance with

the provisions of Section 6 below.

1

STRS 20210618

2. Section 3A (Compensation) of the Agreement shall be deleted and replaced with the following:

"As compensation for the services to be rendered by Neville, effective July 1, 2020, STRS Ohio

shall pay Neville an annual base salary of three hundred thousand dollars and no cents

($300,000.00). Effective June 21, 2021, as compensation for the services to be rendered by

Neville, STRS Ohio shall pay Neville an annual base salary of three hundred nine thousand

dollars and no cents ($309,000.00). Such base salary shall be earned and payable in accordance

with STRS Ohio's normal payroll practices for salaried associates. The Board may increase

Neville's base salary and other benefits in such amounts and to such extent that the Board may

determine in its sole discretion is desirable on the basis of Neville's annual performance and

salary review, as more fully described in Section 5 hereof, and on the basis of other factors

relevant to the operation, management, performance and stability of STRS Ohio."

This First Amendment shall amend and is incorporated into and made a part of the Agreement. To the extent

that any term ofthis First Amendment may be deemed expressly inconsistent with any term in the Agreement,

the terms of this First Amendment shall control. Except as expressly amended by this First Amendment, all of

the terms, conditions and provisions of the Agreement are hereby ratified and shall remain in full force and

effect.

IN WITNESS WHEREOF, both parties hereby execute this First Amendment effective as of the day and year

first set forth above.

State Teachers Retirement System of Ohio

Rita J. Walters, Board Chair

William J. Neville

:f/ta '-Z hJatten By: Rita J. Walters (Jun 22, 202115:07 EDT)

Date: Jun 22, 2021

By:W~fAI~

Date: Jun 22, 2021

Adobe Sign Transaction Number: CBJCHBCAABAAvZ69pj-PMmMjvlCEnTfKZ8erd95AtJtZ

2

STRS 20220617

1

Second Amendment to Executive Employment Agreement

between State Teachers Retirement System of Ohio

and William J. Neville

This Second Amendment to the Executive Employment Agreement between the State Teachers Retirement System of Ohio (“STRS Ohio”) and William J. Neville (“Neville”), (the "Second Amendment"), is entered into this 20th day of June 2022. Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to such terms in the Executive Employment Agreement.

WITNESSETH

WHEREAS, STRS Ohio and Neville are parties to a certain Executive Employment Agreement dated June 26, 2020 and a First Amendment dated June 21, 2022 (collectively, the “Agreement”); and

WHEREAS, the Agreement provides that Neville’s term of employment with STRS Ohio shall be July 1, 2020 through June 30, 2026, which the Agreement defines as the Initial Term; and

WHEREAS, the Agreement further provides that Neville’s employment may be extended as approved by the Board; and

WHEREAS, the Board wishes to extend Neville’s employment through June 30, 2027; and

WHEREAS, the Agreement further provides that the Board may increase Neville’s base salary and other benefits in such amounts and to such extent that the Board may determine in its sole discretion is desirable on the basis of Neville’s annual performance and salary review; and

WHEREAS, on or about June 16, 2022, the Board approved said extension and an increase in base salary, and further authorized the Board Chair to execute this Second Amendment to memorialize the amendments,

NOW THEREFORE, in consideration of the continued performance of the Agreement, and the consideration, mutual promises and agreements set forth herein, STRS Ohio and Neville agree to hereby amend the Agreement as follows:

1. Section 1 (Employment) of the Agreement shall be deleted in its entirety and replaced with the following:

“STRS Ohio hereby employs Neville, and Neville hereby accepts employment as Executive Director, upon all of the terms and conditions hereof. The term of employment shall be for a seven (7) year term commencing as of July 1, 2020 and terminating as of June 30, 2027 (the “Initial Term”), unless extended as provided herein. This Agreement and the employment provided for herein may be extended as approved by the Board and signed by both the Chair of the Board and Neville (the “Renewal Term”). Either party may terminate this Agreement in accordance with the provisions of Section 6 below.

STRS 20220617

2

2. Section 3A (Compensation) of the Agreement shall be deleted and replaced with the following:

“As compensation for the services to be rendered by Neville, effective July 1, 2020, STRS Ohio shall pay Neville an annual base salary of three hundred thousand dollars and no cents ($300,000.00). Effective June 21, 2021, as compensation for the services to be rendered by Neville, STRS Ohio shall pay Neville an annual base salary of three hundred nine thousand dollars and no cents ($309,000.00). Effective June 20, 2022, as compensation for the services to be rendered by Neville, STRS Ohio shall pay Neville an annual base salary of three hundred eighteen thousand two hundred seventy dollars and no cents ($318,270.00). Such base salary shall be earned and payable in accordance with STRS Ohio’s normal payroll practices for salaried associates. The Board may increase Neville’s base salary and other benefits in such amounts and to such extent that the Board may determine in its sole discretion is desirable on the basis of Neville’s annual performance and salary review, as more fully described in Section 5 hereof, and on the basis of other factors relevant to the operation, management, performance and stability of STRS Ohio.”

This Second Amendment shall amend and is incorporated into and made a part of the Agreement. To the extent that any term of this Second Amendment may be deemed expressly inconsistent with any term in the Agreement, the terms of this Second Amendment shall control. Except as expressly amended by this Second Amendment, all of the terms, conditions and provisions of the Agreement are hereby ratified and shall remain in full force and effect.

IN WITNESS WHEREOF, both parties hereby execute this Second Amendment effective as of the day and year first set forth above.

State Teachers Retirement System of Ohio

Robert McFee, Board Chair

William J. Neville

By: ______________________________

By: ______________________________

Date: _____________________________

Date: _____________________________

Jun 23, 2022

Robert McFee (Jun 23, 2022 17:38 EDT) Robert McFee

Jun 23, 2022

Dan MacDonald sticks it to the STRS Board June 16, 2022: "Wake up STRS, you should be working for your retirees and actives"

Good morning, I am Dan MacDonald, an STRS retiree, over 38 years of service and Executive Director of Local 279-R. I sent an email reminder to all elected Board members regarding 26/27 checks. I hope you asked your district’s treasurer because if your system is doing salary pay the way STRS is, I will encourage all new teachers to your districts. [Before Public Participation, the budget had been voted so I sarcastically added “I’ll have to push new teachers to Willoughby.”] 

The last couple of months I’ve have addressed you regarding a single, never married, 76-year-oldd female without relatives who is in a rehab center personally owing $30,000 plus with STRS health care plan because of denial of coverage. This lady is like a yo-yo with STRS through AETNA. Originally her stay was paid; then not; then paid; then not. After I returned from May’s Board meeting, AETNA was paying; then June 8, a stop letter. That very day, June 8, her doctor told her she could put 100% weight on her leg. She can now transfer from her bed; she can walk 15 feet with a walker; suddenly she is not eligible for coverage. During last month’s Board meeting, I handed a HIPAA release form signed by the retiree allowing info to flow to me regarding assigning an AETNA supervisor or case manager, remember STRS holds the policy and can hold AETNA’s policy to the fire, yet no contact  to our retiree or me. Sounds a bit like our newly elected active Board member’s concern last month. Wake up STRS, you should be working for your retirees & actives.

 

New information, another retiree previously addressed by me to this Board who didn’t have an exit plan, I found out this week she had to pay for her prescriptions out of pocket while in the facility once coverage was denied and they refused to release her. Access to Express Scripts was denied because the facility uses their own pharmacy.  When elderly are sent to rehab centers, they do not know these financial disasters; they are hidden in fine print.  They turn for help. STRS is not there. I suggest that the Health Committee start meeting; there is lots to learn, or maybe it is like the STRS disability process where several years ago during an Educational and Planning meeting, Board members were told they shouldn’t be  challenging STRS staff findings during the Wednesday Disability hearings, Board members are to agree or challenge staff before the hearing.

 

On a last note, the PBI policy, Performance Based Incentive, is being voted today. I hope that all Board members have read the whole document thoroughly. Only FOX News would find it perfect and not to be challenged in any aspect.  

 

Actives and retirees stoically wait for enhancements as we are told that inflation is only temporary by STRS staff and consultants. Last month’s projection of this year’s rate of return was a positive 0.11%, the yearly goal is 7%, I suspect it is now negative, how are you going to help us, STRS/Board, in Budget increases and/or PBI’s?

 

Thank you.  

Dan MacDonald's report on the June 16, 2022 STRS Board meeting

From Dan MacDonald

Personal Summary of the June 16^th STRS Board Meeting

I attended the June 16 STRS Board meeting. After roll call and minute approval the 2022 Fiduciary Performance Audit of STRSOH was presented by Funston Advisory Services, LLC. The audit produced no “red flags” but 170 recommendations across six areas were made. Interestingly, during the presentation a slide was designated that refuted the Ohio Retired Teachers Association “Comments” about the audit. [I’d say an unneeded  slap at ORTA and Edward Siedle’s audit. ] The summary did point out a need, amongst many others, for changes in committees, their structure and processes along with improving communications and transparency. The audit didn’t see why video of Board meetings couldn’t happen or why there is no archived meetings. [To see a shortened version of the presentation Goggle “The Ohio Channel Ohio Retirement Study Council June 9, 2022.”  Go into the meeting 8 minutes and 27 seconds to listen to the audit report]

The Report of the Finance Department was next. Appointed Board member Claudia Herrington did question some areas of increases in the budget, but nothing dealing with compensation. No one questioned the $2.1 million added to the FY 2023  budget for a 27^th check which will include the 3% merit-based raise. Only Fichtenbaum voted against the budget. [Steen was not present until the afternoon session]

The Report from the Member Benefits Department then occurred. Premiums were shared and approved by the Board. 96% of enrollees will have premium decreases on January 1. The Dental Plan and Vision Plan premiums were set and approved. Vision premiums remain the same but Dental has increases. The Dental and Vision plans last two years. Enrollment will be in the fall with a January 1 starting date. The plans cover two years of coverage and are available only every other year.

Neville reported on 7 areas during his Executive Director Report. Cost-of-Living Adjustments should begin to appear in July’s pension deposits; retirement applications are down roughly 17% and five other areas. Six people spoke during public participation. All felt betrayed by the Board. Two were actives. [I’d like to thank John Boyd from Oregon and Tim Watson from Lower Sandusky, for attending and speaking.]

An hour lunch then occurred which turned into a two and a half break. When the Board returned they voted on changes to Executive Director Neville’s contract. No details were shared. The Report of the Investment Department followed. The FY 2023 Broker Evaluation and the Performance-Based Incentive Program were approved. [Think bonuses for paralleling the down market.] The FY 2023 Investment Plan supervisors addressed their departments in the areas of  economic outlooks, fixed income, domestic equities, international equities, real estate investments, alternative investments, and risk management. Outside consultants Callan, and then Cliffwater, raved briefly about the investment department’s plan. The plan was approved.

As to one of active/retiree concerns, the total fund return for May was a positive 0.52%. The preliminary FY 2022 Total Fund return is estimated at a positive 0.71%. Total fund assets ended May at $91.8 billion, lower by $3 billion for FY 2022. It was pointed out a little less than the cost of benefits paid out. [Remember, the expected Rate of Return is 7%.  +0.71% is no where near that.  STRS adds in “smoothing.”  So over 5 years with the FY2021 return close to 30%, life at the investment department of STRS still looks good. Retirees should realize that if we all died then benefits would not be paid out and we could have made STRS staff look so much better]

The meeting concluded with Routine Matters, no old/new business.

 

The meeting ended with Dale Price being nominated and  elected Vice-chair for the new Board which will start in September. 

The next Board meeting will be August 18, 2022. If you are available, try to be present. It will be the last Board meeting for Robert McFee, Jeffrey Rhodes, & Rita Waters.