FROM: Stacey Barnier, Chief Human Resources Officer
SUBJECT: Chief Investment Officer – Determine Board Discretionary Portion of Incentive Compensation
RECOMMENDATION:
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Determine the Board discretionary portion of the Investment Incentive Award for the Chief Investment Officer for the fiscal year ended June 30, 2025, up to 5% of base salary.
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BACKGROUND:
SBCERA’s Chief Investment Officer (CIO) is eligible for an incentive award, at the conclusion of each fiscal year, pursuant to his Incentive Award Agreement dated July 6, 2015.
The incentive award shall not exceed 50% of base salary and is calculated based on metrics which were approved by the Board on May 7, 2015. Attached for the Board’s review are the calculations for the incentive award, except for the Board’s discretionary metric, which needs to be determined, up to 5% for the CIO.
The investment performance for FY 2024-25 was 8.7%, net of fees, which is reflected in the quantitative calculations for the Incentive Award (26% out of a possible 30%).
Total award:
Don Pierce $148,200 (38%) plus Board discretionary:
1% $3,900 for a total incentive of $152,100
2% $7,800 for a total incentive of $156,000
3% $11,700 for a total incentive of $159,900
4% $15,600 for a total incentive of $163,800
5% $19,500 for a total incentive of $167,700
The Board may also use partial percentage points.
A companion closed session item to discuss the confidential personnel components of performance has been separately agendized.
BUDGET IMPACT:
Costs for this item are included in the current year non-administrative, investment budget.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Quality Employer and Workplace
STAFF CONTACT:
Stacey Barnier
Amy McInerny
ATTACHMENTS:
Exhibit A: Incentive Award Calculation for Chief Investment Officer