Board approves Wendy Paskin Jordan reappointment to retirement board after ethics and divestment questions

The San Francisco Board of Supervisors voted unanimously on Jan. 7 to approve Mayor Edwin M. Lee’s reappointment of Wendy Paskin Jordan to the San Francisco retirement board, after supervisors probed past ethics complaints, her personal investments and the retirement board’s work on fossil-fuel divestment.

The vote to confirm Paskin Jordan passed 10-0. Supervisor Mark Farrell seconded a motion to approve the reappointment after several supervisors questioned her record and sought assurances about recusal practices and future leadership on divestment.

The discussion centered on three issues raised by supervisors: (1) ethics complaints that have been filed previously and investigated; (2) Paskin Jordan’s prior votes and public statements about hedge funds and separate votes to study engagement on fossil-fuel companies; and (3) whether her private-sector relationships — including a professional relationship with Northern Trust — could require recusal in future contract decisions. Supervisor David Avalos said the complaints had “swirled around” the nomination and that the board should “have some pause and have some scrutiny” before confirming an appointee. Supervisor David Campos said “process is important” and urged a public airing of the ethics questions so the public could hear responses directly.

Paskin Jordan, who described her long career in investments and nonprofit boards, told the supervisors she had not voted to move forward with a broad hedge-fund allocation and had instead sought more detailed manager information. “I did not vote to move ahead on hedge funds. My vote was actually to, slow down the process,” she said. On fossil-fuel divestment, she said she had supported study and limited engagement and described attending conferences to learn what other funds are doing. Supervisor Norman Yee asked whether she would accept a leadership role to set a timeline for action; Paskin Jordan replied, “I would, I would do that,” and said she would consult the retirement board president about pursuing that work.

Deputy City Attorney John Givner briefed supervisors about Government Code Section 1090, which can bar officials from participating in contracts in which they have a financial interest. Givner said the statute is broad and that in some situations recusal is insufficient but that, based on what he understood about Paskin Jordan’s disclosures, the matter likely fell into an exception that would allow recusal rather than require resignation. He said the city attorney’s office would work with her if Northern Trust or a related contract later came before the board.

Jay Huish, executive director of the retirement system, and other retirement board staff were introduced to clarify past votes and board actions. Huish described a series of motions and a special meeting in which staff were directed to return with analysis of different engagement options (referred to as level 1 and level 2 engagement) on fossil-fuel companies; supervisors and retirement board representatives disputed whether Paskin Jordan had been present for or had seconded certain votes at a particular special meeting, and the record was described as being verified.

Members repeatedly framed their concerns as procedural and about transparency rather than alleging criminal wrongdoing. Campos noted that the ethics commission (not the board) is the body that makes final determinations on complaints. Supervisors acknowledged the retirement board had already considered a 2013 resolution urging divestment from fossil fuels and that further staff work had been requested to analyze engagement options.

The board recorded the roll-call vote after members agreed there would be no additional public comment on the reappointment because public comment had been held at the board’s prior meeting. The motion to approve the mayor’s reappointment of Wendy Paskin Jordan for a four-year term ending Feb. 20, 2019, carried unanimously.

The item closed with supervisors urging Paskin Jordan to take an active role on divestment questions and with officials saying they would flag and manage any future conflicts of interest if contract actions implicating her private relationships come before the retirement board.