CalPERS Awards CEO Marcie Frost $1.15 Million Bonus as Fund Posts 14.8% Return
Updated
Updated · CalMatters · Sep 17
CalPERS Awards CEO Marcie Frost $1.15 Million Bonus as Fund Posts 14.8% Return
1 articles · Updated · CalMatters · Sep 17
Summary
Marcie Frost will take home at least $1.7 million this year after CalPERS awarded her a record $1.15 million performance bonus and raised her base salary to $641,000.
The board tied the payout to stronger results under Frost, including a three-year streak of beating investment targets and a 14.8% return last year, more than double the fund’s 6.8% goal.
CalPERS’ funded status has improved to 85% from 65% after the Great Recession, with assets reaching $637.1 billion as of June 30 and employers already paying more into retirement plans.
The compensation package still drew resistance: 2 of 13 board members voted no, State Controller Malia Cohen’s delegate criticized the process, and retiree advocates said the pay resembled Wall Street compensation.
With CalPERS shifting to riskier private markets, will this record-breaking executive payout guarantee future stability or expose pensioners to hidden dangers?
Did a booming stock market artificially inflate CalPERS returns, masking the true reason behind a controversial million-dollar payout for its CEO?