CalPERS board is expected to consider rewinding some of the governance changes it made last year as well as making new adjustments to increase its oversight role, all in the wake of the August resignation of former CIO Yu "Ben" Meng.
The board of the $417.3 billion California Public Employees' Retirement System, Sacramento, as well as one of its committees are slated to meet Sept. 16. During those meetings, members are expected to discuss modifying the current delegation of duties to the CEO, the reporting structure of the CIO, expanding the investment committee and increasing the number of board and committee meetings, a CalPERS spokesman said.
Under the existing governance structure, the board has delegated to the CEO the power to hire, discipline and fire upper management, including the CIO. At CalPERS, only the CEO reports to the board.
Those discussion points were requested by Controller Betty T. Yee in a letter Wednesday to CalPERS board President Henry Jones "to ensure appropriate board oversight." Board member Margaret Brown echoed these requests in a letter Thursday to Mr. Jones and also asked that the board discuss delegation of investment authority.
Ms. Yee confirmed that all of the discussion items she requested are on the agenda in open session, said Jennifer Hanson, spokeswoman for the controller, in an email.
Within the last 18 months, the board has made sweeping changes to its governance model that included reducing the number of committee and board meetings and stripping its investment committee's decision-making power. It also increased the amount that investment staff members could invest on their own discretion.
CalPERS spokesman Wayne Davis said that the items requested by Ms. Yee will be added to the open session agenda sometime next week.