Workers’ Comp Executive, reports that the State (Workers’) Compensation Insurance Fund (SCIF) management is showering bonuses totaling more than $6.8M upon its state employees.
Just wait til you see the compensation packages for the crowd that will run California’s Obamacare Health Insurance Exchange.
State Fund board chairman Larry Mulryn, describes the bonuses as performance based. Yet, the ten-fold increase in largesse follows a $334M dollar underwriting loss, and a combined loss ratio of 137.7%.
“Losses like these would not even result in job retention in any private carrier said one broker.”
Executive Payouts: $315,000 for the PR lady!
Individually, State Fund President Tom Rowe again is earning the largest bonus award at $135,000, while the executive team as a whole pocketed just under $425,000 in performance awards for the year (see chart below). The board also extended Rowe’s contract under the same terms for an additional five years effective Aug 2, 2013. Additionally, several members of the executive team will get a raise in 2013 and/or an increase in their retention incentives.
In recognition of the appointment of Beatriz Sanchez as chief operating officer, the board approved a raise for 2013 of nearly $30,000. Sanchez had been senior vice president of claims. Sanchez’ salary is climbing to $156,000 this year from a 2012 base of $126,240. She will also receive a retention bonus of $39,000 annually.
Others receiving a raise in 2013 include Chief Financial Officer Dan Sevilla and Chief Investment Officer Peter Guastamachio. Sevilla received an $8,900 raise to $305,540, while Guastamachio’s salary is climbing $10,000 to $250,000 this year. Sevilla also is receiving a $10,224 increase in his annual retention incentive to $32,472 a year. State Fund’s Chief Risk Officer Ken Van Laar and General Counsel Newman also are receiving increases in their retention bonuses. Van Laar’s is climbing $6,384 to $28,632 this year, while Newman’s is up $10,164 to $33,804.
Bill Gram-Reefer is Editor & Publisher of Halfway To Concord, founded in 2004. Halfway To Concord is the leading online source for community-driven political news, events, and opinion for Contra Costa County and the San Francisco East Bay.
{ 3 comments… read them below or add one }
I am a writer for Halfway to Concord, I am delighted to say that Halfway has been tough on every entity — state, regional, and local — that wastes money. Each person should look at how much he pays in taxes and thank Halfway that the tax bill is not higher — outrageously higher!
Richard Colman
Orinda, CA
I think BGR should focus on the waste of tax dollars in Concord , rather than writing about the state worker comp waste of tax dollars. I was reading the other day applicants to the Walnut Creek Police Department are turning down job offers and instead going to work for Concord PD because of the bloated pay and benefit packages the city offers. As I think most know, Walnut Creek has a huge retail base – it’s the wealthiest City in the County – easy. Concord, in contrast, has a weaker retail base, but many more people living in the city – who demand services for thier hard earned tax dollars. BGR and other conservatives keep talking about bloated pay and pension packages for public workers, yet when it comes to PD’s they are oddly silent. Fact is Concord is “overpaying” for police services, more than Walnut Creek – for no reason – other than City Council members have caved in and allowed themselves to be doormats for the police union in Concord. I like to see BGR cover this topic, yet he an other writers, like Eber appear to fear the police union, or have friends in PD department. It’s time BGR stop covering up this “giveaway” of tax dollars to this corrupt police labor union.
Dave, you need to pay better attention. This site has consistently brought attention not only to the impact of Concord PD majority share of the Concord City budget, in addition to the Police Officer Association’s ham-fisted approach to throwing its political power and money around to insure a friendly majority on City Council to its payroll and post employment benefits. Furthermore, I helped write the ballot statement in opposition to Concord’s Measure Q in 2010 for a new sales tax that was arguably a direct result of the need to pay the structural budget shortfall involving pension costs of Concord PD. To name just a few:
Cops Behaving Badly
Concord Cop/Budget as issue in City Council Election
Concord Cop Pay
Concord Measure Q Sales Tax
You can throw your straw man epithets around all you want but you are plain wrong in your accusation. And, if you think that waste at the state government does not impact city budgets you have been living in a cave for decades. These are issues that affect us all, especially the needy, irregardless of petty party affiliations.
And..And… if you, Dave Johnson, think something needs to be focused on, why don’t you do some of the heavy lifting and put your reputation on the line and submit a post, instead of waiting for BGR or some other concerned citizen that can complete a sentence.