Home / Business and Economy / South Dakota Investor's Million-Dollar Pay Package Sparks Debate
South Dakota Investor's Million-Dollar Pay Package Sparks Debate
15 Apr
Summary
- State investment officer to potentially earn over $1 million annually.
- Returns have lagged benchmark for three consecutive years.
- Retirees face reduced cost-of-living adjustments due to underperformance.
Starting July 1, 2026, South Dakota's state investment officer is slated for a significant pay increase, with potential total compensation exceeding $1 million. This includes a base salary adjustment and an incentive bonus plan. The Executive Board approved the package by a 12-3 vote, following a recommendation from the state's Investment Council.
Despite concerns over recent underperformance, with investment returns below benchmark for three consecutive years, the Investment Council manages nearly $21 billion in assets. This underperformance has led to retirees receiving cost-of-living adjustments less than inflation for five years. The officer justifies a conservative approach, avoiding overvalued tech and AI investments.
Concerns were voiced by lawmakers, questioning the fairness and wisdom of such compensation given the fund's lagging returns. The new salary will be $656,791, with a bonus plan potentially offering up to 200% of his salary, though the maximum is described as "almost impossible to achieve."
