CalPERS Board Approves Potential Raises for Investment Team

加薪可能很快会卡s for top executives at the California Public Employees’ Retirement System, the largest pension plan in the U.S. with about $325 billion ofassets.

The pension fund’s Performance, Compensation and Talent Management Committee voted Tuesday afternoon to put in place a new framework that will allow salary increases for as many as 14 executives by four percent. The new pay structure will take effect July 1.

The board supported raising pay for employees at its investment office because it lags peers and morale has been low, according to committee members at the meeting Tuesday. The committee, which voted whether to increase salaries for as many as 14 employees or just 4, based its decision in part on a biennial salary survey by consulting firmMcLaganthat was completed in September 2015.

“我们的首席投资官谈到了投资人员所采取的愤怒，无论是来自媒体还是个人，委员会成员亨利琼斯在会议期间表示。他补充说，卡波斯CIO TED Eliopoulos认识到“我们员工的少道化”。

Still, executive salary will remain on the low end of the industry averages provided by McLagan, a unit of professional services firm Aon, according to the pension’s executive compensation consultant firm Grant Thornton.

“Assuming the salary increases are implemented, total compensation will still lag industry peers significantly, particularly due to common long-term incentive plan practices and increases in variable compensation payouts over the last two years,” Eric Gonzaga of Grant Thornton wrote this month in anopinion letterto Michael Bilbrey, the Chair of the Performance, Compensation and Talent Management Committee.

“It’s disheartening to see us in the lowest quartile,” said Richard Costigan, vice chair of the committee, during the meeting.

Costigan noted that the investment office saved CalPERS $199 million last year, which is why he pushed for these raises.

“Unfortunately, what the report shows is we don’t pay enough,” he said. “We aren’t setting aside the resources.”

At the meeting, the CalPERS board also voted to approve pay structures for its chief executive officer and chief investment officer for fiscal year 2017-2018.

The largest single portion of CEO Marcie Frost’sincentive plan, or 25 percent, will be based on organizational leadership, followed by 20 percent for enterprise operation effectiveness, according to documents created for the meeting. Fund performance, stakeholder engagement, and customer service will each represent 15 percent of her plan, with 10 percent based on an investment office benchmark.

Frost’scurrent salaryfalls in the range of $224,000 to $352,000, a CalPERS document shows. Her pay for the past fiscal year was not specified as she started working for the pension plan in June 2016.

Theincentive plan for CIO Ted Eliopoulosis 40 percent tied to fund performance. Fifteen percent will be based on an investment office benchmark, with another 15 percent tied to stakeholder engagement. Enterprise operational effectiveness, deliverables and leadership each represent 10 percent of his incentive plan.

Eliopoulos was paid a base salary of $543,780 for fiscal year 2015-2016 and awarded a $248,026 bonus. CalPERS has a base range salary for its CIOs of $408,000 and $612,000 annually.

The previous incentive plan for Eliopoulos’s salary was 70 percent tied to investment performance, 20 percent linked to enterprise business plan, and 10 percent based on leadership.