CalPERS’ board awarded CEO Marcie Frost a fiscal year 2024 base salary of $578,267 and a fiscal year 2023 incentive compensation award of $192,682.
This represents a 5% base salary increase from the $550,730 base salary in fiscal year 2023 and a 25% larger incentive compensation award from the $154,062 Frost earned in fiscal year 2022. All of the discussions at the committee and board levels were held in closed session, and the board did not disclose its reasoning for the increases.
During public comment after the board had made Frost's fiscal year 2023 compensation public on Sept. 20, Albert Darby, vice president of the Retired Public Employees' Association of California, noted that the $463.6 billion California Public Employees' Retirement System, Sacramento, has lowered its discount rate twice since 2016.
CalPERS' current expected rate of return is 6.8%, while the average public pension fund is at 7.2%, he said.
CalPERS' lower benchmark "makes it easier for CalPERS administrators and investment managers to collect their bonuses, and the bonuses keep coming despite poor investment returns," Darby said.
CalPERS earned a net 5.8% in fiscal year 2023, outperforming its 5.5% benchmark, but below its expected rate of return.