DENVER — Investment managers for Colorado’s largest state pension plan got nearly $1.3 million in bonuses for 2006-07, but the fund’s director says further bonuses have been canceled because of the economy and outrage over compensation at insurance giant American International Group Inc.
Meredith Williams, executive director of the Colorado Public Employees Retirement Association, said Wednesday the bonuses were for 2006 and 2007, when the market soared, and were paid in 2007 and 2008. He said he has canceled bonuses for 2008, due to be paid this year, even though some investment managers may have earned them.
Williams said assets managed by PERA dropped from $41.4 billion on Dec. 31, 2007, to $30 billion on Nov. 30.
Bonuses paid to PERA’s money managers totaled $540,000 for 2006 and $722,000 for 2007. The incentives were limited to a maximum of 35 percent of base salaries, which ranged from $280,610 for the chief investment officer to $109,905 for an equity analyst as of January.
Williams said PERA had written agreements to pay bonuses for previous years when the market was booming but that he decided to cancel all incentive pay this year because of its poor performance.
