The board governance committee of the California Public Employees' Retirement System, Sacramento, on Monday changed its governance policy to make the CEO solely responsible for hiring, evaluating and, if necessary, terminating the chief investment officer.
Before the change was made, the CEO and the board of the $355.9 billion pension plan shared those responsibilities. The board also will only be in charge of succession planning processes for the CEO. Before the change, succession planning for the CEO and the CIO were part of the board's duties.
CIO Theodore "Ted" Eliopoulos announced on Monday he will be leaving the pension fund at the end of this year for family reasons. CalPERS will launch a nationwide search for his replacement.
During a board discussion, Rob Feckner, vice president, noted that CEO Marcie Frost has in the past included board members as part of the process in regards to high level positions at CalPERS.
"I (would) like to find a way that we can inculcate this in the plan moving forward, not necessarily part of this motion," he said.
Board President Priya Mathur then offered that she and Mr. Feckner should work with Ms. Frost on how to proceed with a way to include board members in the process.