Endowment Fund board seeks pay increases for two investment staff; governor declines full raise

The Endowment Fund Investment Board asked the Joint Finance-Appropriations Committee on Thursday to approve additional ongoing compensation chiefly to raise pay for two senior investment staff, citing market competitiveness and expanded responsibilities.

Janet Jessup, a budget and policy analyst with the Legislative Services Office, introduced the Endowment Fund Investment Board portion of the land-board budgets and outlined the board's staffing and funding structure. She told the committee the board manages investments for the land-grant endowments and other funds but that endowment dollars are appropriated in the agencies that receive them, not in the board's operating budget.

The board requested an ongoing compensation enhancement totaling about $100,000 for fiscal 2026, with separate one-time and inflation items included in its larger budget packet. "The recommendations were made by our compensation committee and our board," Chris Antone, manager of investments for the Endowment Fund Investment Board, told the committee. He added that board representatives had met with the governor's office and the Division of Human Resources but had not reached a final agreement at the time the budget was submitted.

Thomas Wilford, chairman of the Endowment Fund Investment Board, described the request as the continuation of a multi-year effort to bring long-tenured investment staff toward market rates. "There's a long history on this enhancement," Wilford said. "There's a history . . . when [Anton] was hired . . . he was hired at a level that was below what was expected. And we've had this enhancement in here for several years. . . . If we had to replace him someday, we would have to pay more than we're paying him."

Wilford and Antone said the largest portion of the requested increase would go to a deputy chief investment officer who has worked at the board for roughly 16'17 years and whose duties have grown as the fund portfolio expanded.

State human-resources and governor's office staff present described a different analytical view. "Based on DHR's analysis, Mr. Halverson was close to policy rate for his pay grade," a governor's office representative, identified in committee as Miss Wolfe, told the panel. She said state policy rates for comparable pay grades often lag private-market compensation and that the governor's recommendation reflects alignment with state pay policy rather than private-market parity.

Antone told lawmakers the board 's portfolio has grown substantially during the deputy's tenure. "We went from managing about $500 million all in fixed income to managing a much more complex portfolio'about $5 billion now between the endowment fund investment board and the money we invest for the state insurance fund," he said, arguing the deputy's responsibilities now align with a higher compensation grade.

No formal action was taken by the committee during the hearing. Committee members sought clarification on the provenance of the request and asked board leaders to be prepared to discuss recruitment and turnover risks if the raises are not funded.

The board also noted the Endowment Fund Investment Board has historically maintained high position-fill rates; Jessup told the committee employees have been consistently filled and the board's five-year average fill rate is near 99.8 percent.

The discussion closed with board representatives thanking the committee for its time; the governor's recommendation for the board's budget did not include the board-requested compensation increases but did support other technical and inflation-related requests.

Ending: The committee did not vote; members indicated they would weigh the board's request alongside the governor's statewide pay and budget recommendations as the budget process continues.