Shallow Pool
Looking at the new Executive Director of the Kentucky Retirement Systems (KRS) a few more thoughts come to mind.
From the Frankfort State Journal:
Mike Burnside, the new executive director of the Kentucky Retirement Systems, plans to hit the ground running when he starts work on Jan. 3.
"I think there's going to be a steep learning curve," he told The State Journal.
Well I’ll give him this at least he's honest about being totally unqualified.
However, honesty seems to be absent in the KRS Board Chairman’s statement.
Randy Overstreet, chairman of the KRS board of trustees, said Burnside has the right experience to lead KRS. "His knowledge of the legislative process and established relationships with the legislature will be invaluable," Overstreet said. However, Burnside is an unknown quantity with local lawmakers. Rep. Derrick Graham, D-Frankfort; Rep. Carl Rollins, D-Midway; and Sen. Julian Carroll, D-Frankfort, all said they were unable to comment on the decision to hire him. None of them could ever recall meeting or talking to Burnside.
Since the decision to hire Burnside was unanimous, (over 3 other apparently more qualified candidates), this feels like a done deal. Mark Hebert asks the valid a valid question on his blog.
It's probably a fair question to ask Burnside if his votes, or lack of votes, had anything to do with his pursuit of the Kentucky Retirement System's top job, which is expected to pay more than $200,000.
All signs point to Bill Hanes not giving up power. The relatively low $157,000 compared to Hanes $235,000, puts Burnside in the same basic salary range as Chief Operating Officer Thielan, Chief Investment Officer Tosh, Chief Benefits Officer (and close personal friend) Geri Miller, and legal counsel Eric Wampler. All four of these owe their positions and allegiance to Hanes.
Hanes will most likely officially work for Robert Klausner or some other vendor for a six figure salary and KRS will pay significantly more to that vendor in fees. With Burnside one of five top officers, it will give the appearance of new leadership, while Hanes still calls the shots behind the scenes.
KRS justified paying Hudepohl this way from their press release.
Hudepohl recommended a well-qualified pool of four candidates from the national market and we are fortunate to have hired such an experienced ‘Kentuckian’ to lead the KRS organization,” Overstreet said. Overstreet said the Board is very pleased with Hudepohl’s management of the search. “The search for a new executive director was extensive and far-reaching, receiving applications from 17 states.”
If everyone else was less qualified than Burnside then the talent level in this pool was pretty shallow.
Labels: krs
posted by Ralph Long @ 5:02 PM
7 comments
7 Comments:
This "hire" has an eerie feel. It doesn't seem permanent, though nothing ever is. Pay $60k to make an inside hire. lol
This is going to add yet another inauspicious element to the beginning of Beshear's term. I think the Gov is going to have to take some sort of action if he doesn't want this stuff to bite him in the ass come 2011.
Just my thoughts, Sarah G
Just another example of nothing new in Frankfort as the past is repeated over and over again. Most voters wanted true change rather than more of the same old politics. Speaking of Executive Directors, the Executive Director at the Department of Insurance, Julie McPeak, was fired on Wednesday and given twenty minutes to vacate the building. She was involved in the Kentucky Central lawsuit that sought information of Beshear's role in the liquidation of Kentucky Central. I guess the new governor did not appreciate her position in the matter. The Commissioner of Public Protection, Tim LeDonne, is now the acting Executive Director of Insurance in addition to his duties as Commissioner. LeDonne has no insurance experience whatsoever, which is par for course as the EPPC Secretary, Bob Vance knows nothing of Insurance or the environment for which his cabinet oversees both. God help us all.
6:36, Burnside was hired by Fletcher appointees, can't blame Beshear for that. McPeak was gonna get fired no matter who was elected.
I am so glad I am retired from KRS. Most of the employees that I still have contact with that work for KRS are counting their days until they can retire. Nothing has been the same since Mr. Hanes took over at KRS. Under prior directors, one of KRS's main objectives was to stay out of the political arena and not subject KRS to political favors. Unfortunately, with Mr. Hanes it was always the "good ole boy" politics. I used to feel good about our retirement and the assurance of benefits in the future. I no longer feel that way.
Mr. Long who would you like to see as Executive Director at KRS?
If Hanes can do it, anybody can do it. I don't know that there is really any "great" qualification to head KRS. To my knowledge there are no in house investment decisions. KRS is simply the tool by which the legislature "bought" baby boomer votes. They kept passing enhancements right up to the moment they went public with the funding crisis. Which KRS executive staff knew about long before all the sabre rattling started.
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