Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. ASSET OWNERS
January 20, 2014 12:00 AM

CalPERS grooming next generation

Board working on a long-term succession plan for its top staff members

  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    CIO Joe Dear and CEO Anne Stausboll are among the key CalPERS executives for whom succession plans are being developed.

    CalPERS trustees are developing contingency plans to find replacements for Chief Investment Officer Joseph Dear, CEO Anne Stausboll and other top staffers in the event they can no longer serve in their roles.

    The succession planning began 18 months ago in closed sessions, before board members for the $282.8 billion California Public Employees' Retirement System, Sacramento, knew about Mr. Dear's illness, said Rob Feckner, board chairman in an interview with Pensions & Investments.

    Mr. Dear, who is being treated for prostate cancer, began his second indefinite medical leave in less than a year on Jan. 6.

    This is the first time officials at CalPERS, the nation's largest defined benefit plan, have discussed publicly their efforts to develop a succession plan.

    Although most public pension funds have interim plans to replace top management, not all have done long-term succession planning, said one expert on pension administration, who asked not to be identified.

    CalPERS' plan involves not only finding potential internal replacements for Ms. Stausboll, Mr. Dear and others, but also giving those candidates more training, if necessary, to enhance their skills to fill the positions.

    Mr. Feckner said the idea is to “grow and nurture staff from within.”

    He said an external recruiter would still do a national search were a permanent replacement needed, “but at the same time we'd have a better understanding of our internal candidates.”

    The source with knowledge of pension administration said long-term succession planning, done at most corporations, runs counter to the open-recruitment concept — in which outsiders have an equal chance — advocated by officials at most U.S. public pension plans.

    “Long-term succession planning is not part of their (public pension fund) culture,” he said.

    A CalPERS source said officials prefer, when possible, to promote someone who knows the fund.

    No formal search

    Mr. Feckner stressed the board is not conducting a formal search for a replacement for Mr. Dear, who intends to return to work.

    “The CalPERS investment staff is the most professional and talented group of individuals of any pension system in the world. While I am focusing on my recovery, and not in the office on a daily basis, I have complete confidence that they will continue to perform in the manner that just produced a 16.2% return for California's public employees. I fully intend, and am looking forward to, resuming my full-time duties as soon as possible and rejoining my friends and associates in the office,” Mr. Dear said a statement emailed to Pensions & Investments on Jan. 16.

    Mr. Feckner said both Mr. Dear and Ms. Stausboll were asked at the beginning of the process to identify potential internal replacements. He said the sole aim of the contingency planning is to ensure that CalPERS will be better prepared if it needs to replace key personnel.

    An outside CalPERS consultant, Funston Advisory Services LLC, Bloomfield Hills, Mich., had recommended in 2011 that the CalPERS board begin long-term succession planning for the CEO's position. The board had hired Funston as part of an effort to improve board governance following a scandal that resulted in the California attorney general in 2010 bringing civil fraud case against CalPERS' former CEO Federico R. Buenrostro, and a former board member, Alfred J. Villalobos. Federal criminal fraud charges are also pending against the two men as well as a civil complaint by the Securities and Exchange Commission.

    Ms. Stausboll, in a separate interview, said succession planning was an “ongoing process.” The goal is to “grow candidates” so the organization is ready for different scenarios, including unforeseen circumstances, she said.

    Mr. Feckner said the contingency planning applies not only to the top executives at CalPERS, but also to senior portfolio officers and division chiefs.

    Several CalPERS officials, who would speak only if they were not identified, said the succession planning for Mr. Dear has taken on some urgency because the chance exists that Mr. Dear will not be able to return to his job. Mr. Dear, despite being on medical leave, participated in a CalPERS retreat on Jan. 14.

    Day-to-day responsibilities

    Mr. Dear this month ceded his day-to-day responsibilities to Ted Eliopoulos, senior investment officer for real estate. Mr. Eliopoulos also took over for Mr. Dear last May when Mr. Dear took his first medical leave, from which he returned in October.

    “We needed a day-to-day person I could pick up the phone and call if I needed to,” said Mr. Feckner. “We needed someone physically in the plant, that's why Ted got the call.”

    Mr. Feckner said Mr. Eliopoulos is corresponding with Mr. Dear on key investment matters, so Mr. Dear is still in the loop and can offer his advice.

    Mr. Dear, 62, joined CalPERS in March 2009, and has helped lead a recovery from the financial crisis that has boosted the pension plan's assets by almost $100 billion since his arrival. The pension plan has had positive returns every year since he took over. He also has implemented new investment risk controls, increased CalPERS' in-house management and supervised on-going restructuring of the real estate and private equity portfolios.

    If Mr. Dear would need to be replaced, board members would need to determine whether they would want someone whose primary expertise is management experience as opposed to an individual with extensive investment experience.

    Mr. Dear's predecessor, Russell Read, had expertise in investing. Mr. Dear was thought of more as a management expert, having served as executive director of the Washington State Investment Board and in other top management positions in state and federal government.

    CalPERS sources say Mr. Eliopoulos was chosen for the acting role because of his investment experience at CalPERS in addition to his management experience and political savvy. He is a former deputy state treasurer and, as such, had sat on the CalPERS board on many occasions representing then-state Treasurer Phil Angelides.

    Mr. Feckner would only say: “Ted seemed to be the one to have the best opportunity to bridge the gap.”

    Related Articles
    CalPERS adopts 10 investment beliefs to guide decisions
    CalPERS CIO Dear takes second medical leave in 7 months
    CalPERS staff: Lower investment risk, but keep discount rate steady
    CalPERS CIO Joe Dear dies
    CalPERS chopping hedge fund allocation
    Ex-CalPERS CEO Buenrostro pleads guilty, admits to taking cash bribes of $200,0…
    CalPERS makes Eliopoulos permanent CIO
    Recommended for You
    ONLINE_190329864_AR_0_YBKZZQSSKIZH.jpg
    IMCO returns 9.6% in 2021, outperforming its benchmark
    SLIDESHOW2_824009999_PH_7_HOEACWCAWVKF.jpg
    Northern Trust plan universe returns 0.2% in Q3
    Northern Trust: Institutional asset owners post 6% gain in Q2
    Northern Trust: Institutional asset owners post 6% gain in Q2
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference