Thread by @yomeeks

This is your daily pension announcement: The Pension War Room™️ will dive in to the tailings pond that is AIMCO executive compensation. #ABLeg

Kevin is Alberta's highest paid public servant. It, however, a confusing landscape.

This info is available from their Annual Report. I will compare Kevin (CEO) and the guy that left AIMCO because of the VOLTS mess, Peter (Exec VP Public Eq) #ABLeg

It is important to note that we don't know if Peter left AIMCO with a payout or not (cause/no cause). You might think it would be a no-brainer for cause situation. Don't cast aspersions.

But in this industry separation payments are sometimes made to keep things quiet.

Kevin's base salary is $500,000 per year and Peter's was $300,000. Without a hint of irony the comment is made....

"The final important consideration is that AIMCo has exercised very material salary restraint. A salary freeze remains in place for AIMCo’s Executive team."

So Kevin and Peter haven't had a "raise" to their base salary in recent memory. Don't feel bad for them as base salary forms a drop in the bucket of overall compensation.

Kevin got another $420,000 for reaching his "annual individual objectives". #ABLeg

Peter got $0. This is probably due to the VOLTS mess. His individual bonus went from about $177,000 to $0.

Kevin gets an additional $108,500 for hitting his corporate objectives and $603,610 for the 2019 investment return.

Peter got $51,150 and $170,735 for the same reasons.

So if your keeping track, Kevin is well over $1.5 million per year so far.

He also receives a long term incentive plan (LTIP) award of $1,128,253 and pension contributions of $68,000 and benefits worth $14,727. #ABLeg

The LTIP is interesting because both it and the investment bonus payments are apparently made:

"based upon value-add investment performance over a four-year period,"

Do we have two bonuses paid for the same reason? #ABLeg

Kevin's total for last year $2.8 million and Peter's $1.05 million.

Unrevealed is the threshold return required to pay these bonuses. (typically a fund would earn benchmark plus a threshold of, say, 0.4% for this bonus to kick in) #ABLeg

Important to note that Kevin is part of a DC pension plan where taxpayers contributes 66% and he contributes 33%.

Peter was a member of MEPP so his pension contributions were closer to 50/50. #ABLeg

This is a lot of money to pay one person. Particularly one person who was working behind the scenes to get his pension clients locked into AIMCO.

Travis says he is keeping a close eye on AIMCO performance but I don't believe him. I don't think he is in a position to do so.#ABLeg

THE CENTRAL PROBLEM IS THAT WE HAVE PAID HUGE BONUSES ON THE POSITIVE VALUE ADD OVER THE LAST 4 YEARS. VOLTS HAS LOST ALL OF THAT VALUE ADD BUT WE DON'T GET ANY OF OUT MONEY BACK.

#ABLeg