CalPERS cuts bonuses to retirement system’s investment pros

CalPERS reduced its bonuses to 55 investment professionals last fiscal year to a total of $3.6 million, from $4.1 million 12 months earlier, according to data provided by the $239.3 billion pension fund.

No salary increases were given to senior leadership.

Joe Dear, chief investment officer, received an $87,750 bonus for the fiscal year ended June 30, while CEO Anne Stausboll received $94,394. The highest award was $152,608 to Arnie Phillips, senior portfolio manager, global fixed income.

Investment compensation at the California Public Employees' Retirement System, Sacramento, is based on a rolling three-year performance average. CalPERS' average annual three-year return for the years ended June 30 was 10.6%.

Public equity and fixed-income staff earned the highest awards because they outperformed benchmarks on the three-year basis, generating $1.6 billion in excess returns.

CalPERS, which manages 64% of its assets internally, spends a combined $40 million annually for investment staff compensation and benefits, compared to $44 million for consultants and $1 billion for external managers. The pension fund saved about $114 million in annual costs through the internal management of fixed-income and global equity assets, according to CalPERS.