Pension Director Is Retiring; Florida Fund Had Enron Loss
The New York Times
March 29, 2002
TALLAHASSEE, Fla., March 28 -
The head of Florida's state
pension fund, which has come under
scrutiny because of losses from
investments in Enron (news/quote),
announced today that he would retire
in June after six years on the job.
Tom Herndon, executive director of the
State Board of Administration, the
nation's fourth-largest public pension
fund, made his announcement nearly
four months after a money manager hired on behalf of the fund sold 7.6 million
shares of Enron at a huge loss.
Florida's total loss related to Enron's collapse was $328 million, making it one of
the largest losses incurred by a single shareholder.
That loss prompted an inquiry by a state legislative panel as well as an
investigation by the attorney general into the actions of Alliance Capital
Management (news/quote), the company responsible for the largest part of the loss
incurred by the fund.
Mr. Herndon, 56, who earns a salary of more than $171,000 a year and has worked
in state government for 32 years, said the Enron debacle had nothing to do with
his decision to leave. He said he wanted to leave before he grew too old to take a
position in the private sector.
"I realize the announcement of my departure may seem untimely to some because
of the recent Enron problem," Mr. Herndon said. "I can't control how people may
choose to view this decision, but the simple truth is that I'm ready for a change."
Mr. Herndon's successor will be chosen by Gov. Jeb Bush and two other elected
officials, both Republicans, who act as trustees to the pension fund.
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