CalPERS Investment Chiefs Get Bonuses

Over the objections of state Controller Kathleen Connell, the board of the California Public Employees’ Retirement System voted bonuses for its chief investment officer and other senior investment staff. Chief Investment Officer Sheryl Pressler received an 8% base pay raise, to $198,450 as of July 1, a 20% bonus for 1996 and a 17.5% bonus for the first half of 1997, prorated for the period. Investment chiefs for the pension fund’s real estate, public market and private equity units received no base pay increases but bonuses ranging from 22% to 70% of pay. William Crist, head of CalPERS’ 13-member board, said the bonuses were based on an evaluation system devised last year to judge how much value the investment directors add to the $110-billion fund. He said the salaries and bonus plans were deemed necessary to attract high-quality investment talent to the giant fund. But Connell, who sits on the board, attacked the pay structure as “unconscionable” relative to most public employees’ salaries.