S.C. treasurer urges delay on bonus payment

COLUMBIA — South Carolina Treasurer Converse Chellis asked Wednesday that the Retirement System Investment Commission hold off paying a $176,500 bonus to the man chiefly responsible for making the state's retirement investment decisions.

Chellis spokesman Scott Malyerck said Chellis, a panel member, called commission chairman James Powers and requested that Bob Borden's bonus payment be delayed.

"It seems to be, in light of what's occurring, an excessive package," Malyerck said. Chellis wants the bonus reviewed when the commission meets next week.

State agencies have faced repeated budget cuts this year and workers are facing furloughs and layoffs.

Earlier this week, Gov. Mark Sanford asked agencies to set aside nearly $240 million, or 4 percent of their budgets, to help head off shortfalls. Last month, the Legislature slashed $488 million for budgets, taking a heavy toll on health care and college spending.

"It just seems like an odd thing to do, given what we're asking agencies to do and the fact employees are being laid off," Sanford spokesman Joel Sawyer said.

Borden said earlier Wednesday that his contract with the commission calls for an incentive of 50 percent of his $353,000 salary to be paid when he meets benchmarks for investment returns. In the year that ended June 30, Borden said his work left the retirement system $1 billion more and helped move the state's returns from the bottom 5 percent in the nation to the top quarter.

"The targets we had set were all met," Borden said.

He hasn't seen the incentive check yet. "Sadly, my take will be five figures, not six," Borden joked before learning that Chellis wanted the bonus stopped.

He did not immediately respond to a message left after Chellis called for a delay in the payment.

Malyerck said Chellis wants to see if the contract with Borden actually requires that the bonus be paid at all.

Commission member Reynolds Williams was chairman last year and says Borden earned his incentive pay and that kind of bonus is needed to attract and keep top talent.

"You want very talented investment people; very talented financial people. It would be incredibly easy to hire away somebody of his skill and talent if there weren't generous compensation," Williams said.

And Borden's pay shouldn't be considered the outrage that some see at the dinner table with Wall Street and bank chief executives running companies aground and getting big bonuses, Williams said.

"I don't think we're offended by a 50-percent bonus for outstanding performance," he said.

The bonus does grab attention, though, said Sam Griswold, president of the State Retirees Association of South Carolina.

"I was unaware that was part of his contract, but I am not upset about it as long as he performs," Griswold said. "The weight of the retirement system sits on his shoulders."