CalPERS grooming next generation
Skip to main content
pilogo-NEW
Subscribe
  • Subscribe
  • My Account
  • login
  • NEWS
    • Asset owners and the coronavirus
    • Alternatives
    • Consultants
    • Coronavirus
    • Defined Contribution
    • ESG
    • Frontlines
    • Hedge Funds
    • Investing / Portfolio Strategies
    • Money Management
    • Pension Funds
    • People Moves
    • Private Equity
    • Real Estate
    • Searches & Hires News
    • SECURE Act
    • Special Reports
    • WorldPensionSummit
    • Ron Schmitz
      Pandemic drives faster transition for Virginia to private markets
      Mubadala Investment Co. logo
      Mubadala draws on portfolio in coronavirus fight
      T.J. Carlson
      Texas Muni reduces downside risk during pandemic, finding opportunities now
      Scott Davis
      ‘Triage plan’ at Indiana system helped stem losses
    • Deborah Pederson and David J. Rothenberg
      Arena hires 3 to boost global marketing of private credit strategies
      BentallGreenOak agrees to acquire Metropolitan Real Estate Equity
      watch video
      0:45
      Private funds weathered 2020 turmoil
      Daniel McHugh
      Aviva Investors promotes from within for real assets CIO
    • Kieran Mistry
      Hymans Robertson picks head for new non-traditional risk transfer unit
      Troy Saharic
      NEPC brings on director of new business development
      Bill Foley
      Foley-backed SPAC agrees to $7.3 billion deal with Alight
      Jason Schwarz, chief operating officer of Wilshire,
      New owners have big plans for future of Wilshire
    • Senate Majority Leader Chuck Schumer, D-N.Y., wears a protective mask while departing the U.S. Capitol
      Senate virus relief bill drops retirement plan COLA freeze
      A pharmacist administers a dose of the COVID-19 vaccine in Mountain Brook, Ala., on Feb. 21, 2021
      Business optimism grows as vaccinations spread – Fed
      watch video
      0:59
      Coronavirus and the S&P 500: February 2021
      Multiemployer pension measures cleared for relief bill vote
    • Desktop with document showing pie chart with investment types along with a calculator
      OECD proposes revision of its DC ‘good design’ roadmap
      Dominic Scriven, director and portfolio manger of Dragon Capital, speaks during an interview in Ho Chi Minh City, Vietnam in 2006
      Vietnam gets its first private defined contribution plan
      DCALTA releases daily valuation tool for alts in DC plans
      PSCA: Employee participation in non-qualified deferred comp plans rising
    • The tower of Stockholm City Hall rise above the city's skyline on Aug. 6, 2020
      Swedish funds managing $250 billion get slammed for ESG record
      Vapor rises from a petrochemical plant
      New York State Common inks more climate pacts
      Michael Herskovich
      BNP Paribas Asset Management names global head of stewardship
      TPT Retirement taps into low-carbon strategies
    • 2 U.K. pension execs take on ESG investing in new podcast
      Donation illustration
      Jefferies will use trading commissions to do good
      Michael Arougheti
      SPACs ride wave as latest investment darling
      Spirit winners
      Prudential honors young people who are helping out
    • Robert 'Rob' Shafir listens during a Senate Permanent Subcommittee on Investigations hearing in Washington on Feb. 26, 2014
      Sculptor hedge fund hits sixth straight year of outflows
      The WallStreetBets forum on the Reddit Inc. website on a laptop computer and the GameStop logo on a smartphone in an arranged photo.
      GameStop frenzy has hedge fund managers rethinking next moves
      Gabe Plotkin, chief investment officer and portfolio manager of Melvin Capital Management, speaks during the Sohn Investment Conference in New York on May 6, 2019
      Citadel, Point72 back Melvin with $2.75 billion after losses
      Shanghai skyline
      Global hedge funds struggle even in a more open China market
    • The tower of Stockholm City Hall rise above the city's skyline on Aug. 6, 2020
      Swedish funds managing $250 billion get slammed for ESG record
      Louisiana Teachers rehires Mondrian as small-cap manager
      CalSTRS adds alts investments to ESG-themed portfolio
      Vapor rises from a petrochemical plant
      New York State Common inks more climate pacts
    • Manulife taps UBS veteran to oversee its China business
      Herman Bril
      Arabesque Asset Management chooses first CEO
      Railpen hires head trader in preparation for in-house trading
      Andy Moniz
      Acadian picks responsible investing director
    • CalSTRS adds alts investments to ESG-themed portfolio
      District of Columbia Retirement Board executive director to retire
      Police car in the city of San Antonio
      San Antonio fund terminates Lazard from emerging markets strategy
      Fresno County Employees moves $22 million between Eaton Vance funds
    • District of Columbia Retirement Board executive director to retire
      Deborah Pederson and David J. Rothenberg
      Arena hires 3 to boost global marketing of private credit strategies
      Manulife taps UBS veteran to oversee its China business
      Herman Bril
      Arabesque Asset Management chooses first CEO
    • The Charging Bull statue is covered in snow near the New York Stock Exchange on Feb. 11, 2021
      Bain: Private equity managers finish 2020 strong
      Carlyle secures $4.1 billion ESG-related credit facility
      Hamilton Lane raises $3.9 billion for fifth secondary fund
      PSG closes first Europe-focused fund at $1.5 billion
    • AEW chooses head of fund operations and debt finance
      Sebastiano Ferrante and Jocelyn de Verdelon
      PGIM Real Estate turns to staff to fill new roles
      European managers key in on specialist strategies
      Ingrid Jacobs
      Jones Lang LaSalle brings on head of diversity and inclusion
    • Retirement cartoon
      Hopes rising for retirement readiness in 2021
      Neal and Brady
      Retirement security could be only issue both sides accept
      David Ireland
      Sponsors returning to questions about in-plan annuities
      Shawn O'Brien
      Annuities coming to target-date funds, but not right away
    • Charging Bull, sometimes referred to as the Wall Street Bull or the Bowling Green Bull, a bronze sculpture that stands on Broadway just north of Bowling Green in the Financial District of New York City
      Top-performing managers Q4 2020
      P&I 1,000 largest retirement plans: 2021
      Retirement in emerging markets
      Outlook 2021
    • U.S. still a key market for investors
      Collected coverage of P&I's 2020 WorldPensionSummit
      Pedestrians pass a large advertisement on the Arndale Center shopping mall reading 'Act now to avoid a local lockdown' in Manchester, England
      COVID-19 puts new opportunities and risks on the agenda - WPS panelists
      Screens display stock price information over the trading floor of the NYSE Euronext exchange in Paris
      Private assets will continue to grow in portfolios – WPS panelists
  • Data
    • Research Center
    • Searches & Hires Database
    • Searches & Hires News
    • RFPs
    • Charts / Infographics
    • Sponsored Research
    • Trackers
    • Q2 2020 searches and hires overview report
      Q2 2020 money manager M&A activity summary
      Q2 2020 legal overview report
      Q1 2020 searches and hires overview report
    • Louisiana Teachers rehires Mondrian as small-cap manager
      University of Louisville taps Cammack as DC plans consultant
      Cook County allocates $50 million to Mesirow funds
      South Carolina earmarks up to $355 million to 6 funds
    • Louisiana Teachers rehires Mondrian as small-cap manager
      University of Louisville taps Cammack as DC plans consultant
      Cook County allocates $50 million to Mesirow funds
      South Carolina earmarks up to $355 million to 6 funds
    • Independent Investment Consulting Services
      Financial Auditing Services
      Actuarial Services
      Emerging Market Equity Manager Services
    • Taiwan Semiconductor’s No. 1 in the emerging markets book
      U.S. fixed-income returns post another positive year
      Nasdaq delivers an impressive year
      U.S. dollar's recent decline continues
    • Institutional Investors: Shared Expectations, Divergent Paths
      Global Investor Study 2016
      Workplace Financial Wellness
    • U.S. Endowment Returns Tracker
      Pension Fund Returns Tracker
      Earnings Tracker
      Corporate Pension Contribution Tracker
  • Insights
    • Opinion
    • White Papers
    • Industry Voices
    • Letters to the Editor
    • Partner Content
    • Publisher's Update
    • Tesla cartoon
      Don’t confuse wealth creation with retirement saving
      Top 1000 cartoon
      Top 1,000 retirement plans weather storm just fine
      Infrastructure cartoon
      You must go big on infrastructure, Mr. President
      Retirement cartoon
      Hopes rising for retirement readiness in 2021
    • Investment Trends: Looking Ahead Across Equity Sectors
      Rethinking Market and Reference Data Management
      China is embarking on a new stage of growth
      Gold Outlook 2021
    • Sameer Shalaby
      Commentary: Why should investors care about treasury management?
      David Blitzstein
      Commentary: Without a national retirement policy, Americans face a future of pension crises
      Lawrence Cunningham
      Commentary: Gensler should keep Clayton’s pragmatic proxy adviser rules
      My-Linh Ngo
      Commentary: Pension funds and the role of the debt market in the fight against climate change
    • Writer using a typewriter
      OCIO industry needs to adopt GIPS
      Writer or journalist workplace. stock illustration
      Even as it assails China, Trump administration emulates it
      Skeptical of Main Street support for proxy adviser proposal
      Focus on manager diversity pushes asset owners’ to walk the talk
    • P&I Content Solutions
      How will gold react?
      To people shaking hands
      P&I Content Solutions
      Lessons From 2020: Today’s OCIO Model Passes a Major Test of Governance
      Sponsored Content By MassMutual
      Leveraging Data to Manage Risk
      Sponsored Content By iShares
      ETFs are becoming a cornerstone of insurance equity portfolios
    • Help us help you by supporting quality journalism
      You Must Believe in Spring
      Everything Must Change
      Tomatoes & Investments
  • Multimedia
    • Videos
    • Webinars
    • Polls
    • Slideshows
    • Charts / Infographics
    • watch video
      0:45
      Private funds weathered 2020 turmoil
      watch video
      0:59
      Secure choice and other retirement plans at a state level
      watch video
      3:33
      P&I 1,000 by the numbers 2021
      watch video
      1:33
      A look at hiring activity in 2020
    • Emerging Markets: Expanding Investors’ View
      2021: A Fixed Income Odyssey
      ESG Capabilities and Climate Impact Investing
      Technology is the New Oil: The Changing Nature of Emerging Markets
    • POLL: Working after the pandemic
      POLL: The year ahead for the 1,000 largest U.S. retirement funds
      POLL: The Biden administration’s economic plans
      POLL: Retirement issues in 2021
    • view gallery
      9 photos
      Coronavirus and the markets
      view gallery
      22 photos
      The 1,000 largest retirement funds: 2020
      view gallery
      10 photos
      Outlook 2020
      view gallery
      10 photos
      2019 as seen through the eyes of Roger
    • By the Numbers for February 2021
      Top Performing Managers of Domestic Limited-Duration Fixed Income, 4th Quarter 2020
      Top Performing Managers of Domestic Value Equity, 4th Quarter 2020
      Top Performing Managers of Global Balanced, 4th Quarter 2020
  • Events
    • Conferences
    • Webinars
    • Defined Contribution Spring Virtual Series
      DC Investment Lineup Virtual Series
      ESG Investing Virtual Series
      Private Markets Virtual Series
    • Emerging Markets: Expanding Investors’ View
      2021: A Fixed Income Odyssey
      ESG Capabilities and Climate Impact Investing
      Technology is the New Oil: The Changing Nature of Emerging Markets
  • Careers
  • Research Center
MENU
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
    Asset owners record 9.4% gain in Q4
    Asset owners record 9.4% gain in Q4
    Asset owners focus more on stewardship despite obstacles – survey
    Asset owners focus more on stewardship despite obstacles – survey
    Retirement adequacy and sustainability suffer in coronavirus pandemic - report
    Retirement adequacy and sustainability suffer in coronavirus pandemic - report
    How will gold react?
    Sponsored Content: How will gold react?
    sponsored
    Events
     
     
    Sponsored
    White Papers
    Rethinking Market and Reference Data Management
    Investment Trends: Looking Ahead Across Equity Sectors
    China is embarking on a new stage of growth
    Gold Outlook 2021
    Shifting DC Times - Winter 2021
    GP-LED OPPORTUNITIES AT THE SMALLER END OF THE MARKET
    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

    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.

    pilogo-NEW
    About Us

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

    Chicago Office
    150 N. Michigan Ave.
    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 © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • NEWS
      • Asset owners and the coronavirus
      • Alternatives
      • Consultants
      • Coronavirus
      • Defined Contribution
      • ESG
      • Frontlines
      • Hedge Funds
      • Investing / Portfolio Strategies
      • Money Management
      • Pension Funds
      • People Moves
      • Private Equity
      • Real Estate
      • Searches & Hires News
      • SECURE Act
      • Special Reports
      • WorldPensionSummit
    • Data
      • Research Center
      • Searches & Hires Database
      • Searches & Hires News
      • RFPs
      • Charts / Infographics
      • Sponsored Research
      • Trackers
    • Insights
      • Opinion
      • White Papers
      • Industry Voices
      • Letters to the Editor
      • Partner Content
      • Publisher's Update
    • Multimedia
      • Videos
      • Webinars
      • Polls
      • Slideshows
      • Charts / Infographics
    • Events
      • Conferences
      • Webinars
    • Careers
    • Research Center