City of San José
Council Meeting
September 26, 2023
Item 3.6
Spencer Horowitz – Federated Retirement Board
Andrew Gardanier – Police and Fire Retirement Board
Measure G
Article VIII, Section 810.1 of the City Charter
(e) Compensation set for chief executive officer, chief investment officer, or their equivalent and the investment professional staff shall be set in accordance with Charter Section 902 and the board or boards shall consider compensation of equivalent positions in comparable United States Public Pension Plans in recommending the total compensation for the positions of chief executive officer, chief investment officer or their equivalent and the investment professional staff.
2 Purpose
• Salary Survey conducted every 4-5 years
• CEO, Sr. Investment Officer, Investment Officer previous survey 2018 • CIO survey conducted previous survey 2017
• Current survey conducted 2022
• Competitive salaries already up 3% - 6% since survey
• Goal:
• Attract and retain top talent
• Be competitive in the Bay Area and State-Wide
• Maintain team with 5-year investment performance >> 6.625% discount rate • P/F 5-year return = 6.8%
• FED 5-year return = 7.5%
• Koff & Associates
• Industry leading HR & compensation consultant 3
Agency Comparable
1. Alameda County Employees’ Retirement Association
2. Contra Costa County Employees’ Retirement Association
3. Los Angeles City Employees’ Retirement System
4. Orange County Employees Retirement System
5. San Bernardino County Employees’ Retirement
6. San Francisco Employees’ Retirement System
7. San Mateo County Employees’ Retirement Association
Same comparables as previous survey
Representing high-cost coastal California jurisdictions 4 Recommendation
Adjust salary range maximum for the classification of:
• Chief Executive Officer (7501) $244,134.49 - $376,488.00 • Assistant Director & Chief Investment Officer (7506) $279,2737.54 - $408,300.00
• Senior Retirement Investment Officer (7507) $152,703.48 - $266,409.00 • Retirement Investment Officer (7505) $144,514.82 - $231,660.00 Proposed max salaries equal to 75th percentile of competing plans New salary ranges established for coming 4 - 5 years
Competing market rate salaries expected to increase over coming years 5 Proposed Salary Ranges
6