CalPERS CEO receives $1.15 million performance bonus

The board of the California Public Employees’ Retirement System (CalPERS) has awarded CEO Marcie Frost a $1.15 million performance incentive. This marks Frost’s first seven-figure bonus since she began leading the nation’s largest state pension fund in 2016. The bonus is in addition to her base salary, which was increased to $641,000.

The incentive follows a period of strong financial performance for the fund. CalPERS reported a 14.8% investment return last year, more than doubling its target, and has beaten investment earnings targets for three consecutive years. As of June 30, the fund’s portfolio was valued at $637.1 billion, representing 85% of its long-term obligations to members.

While CalPERS board President Theresa Taylor praised Frost for delivering “excellent results,” the decision was not unanimous. Two of the 13 board members voted against the bonus. Deborah Gallegos, representing State Controller Malia Cohen, expressed opposition, stating the compensation package did not consider all relevant factors, particularly regarding California’s current structural deficit.