Word that some top public pension plan investment executives are receiving more than $500,000 a year in salary packages that include performance-based compensation is spurring officials at other public funds to review their own pay structures.
"I see what's happening in other funds, and I want to be proactive," said Craig Slaughter, executive director of the West Virginia Investment Management Board, Charleston, which oversees $7.8 billion in state pension and worker compensation assets. The board is considering hiring a consultant to study what other public funds and endowments are paying their investment executives, he added.
The interest in compensation for public fund investment officials follows news late last year that Matt Clark, the state investment officer who oversees the $6.8 billion South Dakota Retirement System, Pierre, took home $509,000 in 2006 — a $216,000 bonus on top of his base salary of $293,000, Mr. Clark confirmed.
At the $100 billion Teacher Retirement System of Texas, Austin, newly hired Chief Investment Officer T. Britton "Britt" Harris IV, who receives a base salary of $402,000, can also get incentive bonuses under a performance-based compensation system launched July 1 that could net him a total of $700,000 in 2010, according to Howard Goldman, a spokesman for the system. Mr. Harris was formerly chief executive officer of Bridgewater Associates, and also had been president and CIO of Verizon Investment Management, which manages about $62 billion in pension assets for Verizon Communications Inc., Stamford, Conn.