The chief executive of the Alaska Permanent Fund Corp. announced his resignation last week because of health concerns, leading to a special board meeting on Monday to begin the process of finding a replacement.
Executive Director Mike Burns' resignation was effective Monday.
"We appreciate the many years of service and outstanding performance that he brought to his role as CEO of the Alaska Permanent Fund Corporation," said board Chair Bill Moran.
Laura Achee, director of communications and administration with the state-owned corporation, said Burns is retiring. She would not specifically describe the health concerns that led to the resignation, announced by Burns in a letter on Wednesday.
"Mike's a private guy and he asked us to keep it to health concerns," Achee said. "The board is very happy with him."
Burns became executive director in 2004 when the fund, built on revenues from the state's oil fields and returns from investments, totaled $26 billion.
Recently managing about 35 employees, Burns oversaw the fund as its value rose to $40 billion, then slid back to $26 billion in 2009 after the economy crashed. Riding a booming market in recent years, the fund was worth $55 billion late last week.
Most people are familiar with the fund thanks to the annual dividend checks it spins out to most Alaskans. But with the state's oil production tax income down sharply, the fund faces renewed scrutiny as a source of revenue that could help close the state's $3.5 billion deficit.
The fund's value during Burns' service is important, but more important are the programs Burns helped implement, said Achee. That includes bringing more services in-house, reducing the need for outside contracting and expanding knowledge internally, she said.
The fund in recent years has also started investing in infrastructure around the world, including in airports, ports and wind farms that provide reliable returns.
Burns has also recently overseen the fund's first direct investment in a private venture operation. The fund formed a joint venture and invested tens of millions of dollars into American Homes 4 Rent, a company that buys single-family homes in distressed areas and rents them out.
"He saw the corporation through a lot of changes," Achee said.
With an annual salary of $343,658 in 2014, Burns was one of the state's highest paid employees. He had served as president of KeyBank, National Association (Alaska) before joining the fund.
The board Monday appointed Valerie Mertz, chief financial officer at the fund, to the role of acting executive director for 30 days. That will give the board time to consider appointing an interim executive director.
The board also announced it will work with human resources staff to develop a process to search for a new executive director, a press statement said. That process could take several months.