State treasurer's adviser to get up $250,000 a year
Posted on 08/20/2002 10:07:50 AM PDT by Constitution Day
State treasurer's adviser to get up $250,000 a year
The Associated Press
August 20, 2002 12:23 pm
RALEIGH, N.C. -- State Treasurer Richard Moore has agreed to pay a senior adviser as much as $250,000 year at a time when state workers aren't getting raises and in some cases, are losing their jobs.
Moore says he must pay that much to retain Andy Silton, his senior investment adviser, because that salary is on par with the chief financial officers at other state pension plans. Silton will manage more than $60 billion in pension and other state investments.
"Now, more than ever, in this market, we need the best investment advice," Moore said.
"I thought it was very appropriate ... that I would hire a consultant that would provide the investment advice that the beneficiaries of this system tell me they want," he said. "As I go out and talk to retired police officers and the like, they tell me they want not the cheapest advice but the best."
The State Employees Association of North Carolina isn't upset. Instead, its president wants salary comparisons for other state workers to bring their pay in line with other states or the private sector.
"That's indicative of the treatment of all state employees," he said. "We want somebody to take a systematic look at our compensation system, and not piecemeal it with the highest-paid state employees.
"Nobody is doing that for our correctional officers making $22,000, $23,000 a year," said SEANC president Dana Cope. "We want the best and brightest there, too, making sure that prisoners don't escape."
Under a contract signed last month, Moore agreed to pay Silton a base salary of $170,000, plus a performance bonus of as much as 30 percent that would increase his compensation to just less than $250,000.
Moore acknowledged Monday the awkward timing for the contract, given the state's budget troubles.
"It is difficult to create the appearance of being as frugal as possible in this environment, but I'm trying not to practice pennywise, pound-foolish tactics," he said. "I am convinced that North Carolina's finances will be better off in the long run, and I felt that I had no choice."
Silton is a former executive vice president at Legg Mason Inc. in Baltimore, where he oversaw investments that totaled $104 billion. He is also a former president of TradeStreet Investment Associates and oversaw more than $100 billion in investments for NationsBank Asset Management.
In the private sector, Moore said, Silton would make $350,000 to $1 million a year. Moore said pay arrangements for the chief-investment officer in similar state-pension systems range from $153,635 to $343,992.
Silton will not be paid with money from the pension plan, Moore said. Instead, he will be paid from fees that the state has recaptured by renegotiating commissions with brokers.
Rep. Art Pope, R-Wake, said Stilton still would be paid with public money that otherwise would go to the state or to pensioners.
"To me, it just raises questions about why we need a consultant to act as investment adviser to the state treasurer," he said. "For one, that's what we elect the state treasurer to do."
Moore said that a chief-investment officer is needed to monitor overall volatility and asset allocation in the state's portfolio.
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So I guess he's doing it out of the goodness of his heart? I know if I was an investment advisor I would turn down a cool million to work for 25% of that for the state. What has Jim Hunt done to us?!? I fear we won't know for years...
MKM
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