Deputy Cabinet secretary Jon Clark tapped as New Mexico state investment officer

Dec. 27—A nationwide search for a new state investment officer didn't require leaving New Mexico after all.

The State Investment Council voted Wednesday to select Jon Clark, an Albuquerque native, for the high-profile position.

Clark has served as deputy secretary of the state Economic Development Department since March 2019 and has been filling in as acting economic development secretary since the departure of Alicia J. Keyes earlier this year.

Clark beat another New Mexican for the job: Olivia Padilla-Jackson, who served as Gov. Michelle Lujan Grisham's first Cabinet secretary at the Department of Finance and Administration before she stepped down in May 2020 after about 2 1/2 years on the job.

Among 86 applicants, Clark and Padilla-Jackson were the two finalists.

Clark has been offered an annual salary of $285,000, or about $34,000 less than Steve Moise, the previous state investment officer.

Moise retired in October after 13 years on the job. His departure prompted discussions about increasing his salary of $319,000 a year to attract a qualified replacement, but members of the State Investment Council didn't broach the issue during a brief special meeting Wednesday.

The council, chaired by the governor, approved Clark as the next state investment officer on a vote of 8-0 "subject to finalization of all administrative processes associated with the hiring requirements for the state of New Mexico." Clark is poised to start Jan. 22.

Council members made few comments after emerging from an executive session, indicating their decision already had been made.

"We're very excited about the new state investment officer and the process that we used to get them," said Catherine Allen, chair of the council's governance committee.

Allen thanked Ohio-based Hudepohl and Associates, a leading executive search firm, for finding "such great candidates" to pick from.

"We are very lucky to have a number of really excellent finalists," she said.

While Clark and Padilla-Jackson, who is currently serving as vice president of finance and operations at Central New Mexico Community College in Albuquerque, emerged as the two finalists, the council interviewed six applicants.

In his cover letter, Clark wrote he would be the "best person" for the position and that his résumé was "quite unique."

"I do not come from a traditional investment background, although I do have a finance degree and have led venture capital investments through my current role," he wrote. "I also served as Chief Economist for the Legislative Finance Committee. However, this role does not require a traditional investment background. It requires a person who excels at making good managerial decisions and has sufficient understanding of the investment landscape to understand and act on the advice of the professional staff working at the SIC."

Clark did not return a message seeking comment.

Clark also wrote the State Investment Council, which manages more than $48 billion in total assets, has focused on one of its two missions — financial returns on the state's permanent funds — for far too long.

"This is and always should be the primary focus, but the secondary mission of supporting economic development in New Mexico for the joint benefit of the state's investment portfolio and the long-term economic viability of the state was essentially ignored for many years," he wrote.

Clark called the agency's secondary focus "critical" amid serious long-term financial concerns for the state. He noted economists project about 10 years of revenue growth followed by likely decreases.

"There are two ways to address this upcoming crisis: restrain growth in the recurring state budget and diversify and grow the state's economy," he wrote. "The SIC has a pivotal role to play in this, and I would be the ideal candidate to take on this charge while ensuring the continued growth of the permanent funds."

Maddy Hayden, a spokeswoman for the governor, said Mark Roper, director of the department's economic development division, will serve as acting secretary after Clark leaves his current position.

Follow Daniel J. Chacón on Twitter @danieljchacon.