FROM: Stacey Barnier, Director of HR and Risk Management
SUBJECT: Chief Investment Officer - Determine Board Discretionary Portion of Incentive Compensation
RECOMMENDATION:
title
Determine the Board discretionary portion of the Investment Incentive Award for the Chief Investment Officer for the fiscal year ended June 30, 2020, up to 5% of base salary.
body
BACKGROUND:
body
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 your 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 2019-20 was a disappointing -3.1%, which is reflected in the quantitative calculations for the Incentive Award (7% out of a possible 30%).
Total award:
Don Pierce $46,712.64 (15%) plus Board discretionary:
1% $3,114.18 for a total incentive of $49,826.82
2% $6,228.35 for a total incentive of $52,940.99
3% $9,342.53 for a total incentive of $56,055.17
4% $12,456.70 for a total incentive of $59,169.34
5% $15,570.88 for a total incentive of $62,283.52
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 were included in the FY 2019-20 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