What It Takes to Be CalPERS’ CIO

The largest US public pension plan seeks candidates with 15 years of experience, extensive knowledge of investment strategies, and high ethical standards.

(May 28, 2014) — Attention investment officers: The California Public Employees’ Retirement System (CalPERS) has made public just what it expects of applicants for its vacant CIO role.

“This is an outstanding opportunity for a visionary investment professional to play a key role in a preeminent public pension fund that values critical thinking, strong judgment, and the highest ethical standards,” CalPERS said in the job description.

The new CIO, responsible for $288 billion in assets and an investment staff of 400, will “make recommendations and work closely with the CalPERS board of administration to determine prudent, forward-thinking investment strategies in accordance with CalPERS fiduciaries responsibilities, policies, and governance standards.”

As the steward of the largest US public pension plan, the CIO will be responsible for monitoring its asset allocation strategy, external managers’ performance, and internally managed assets. He or she will also be responsible for negotiating manager and custodian fees, upholding constructive shareowner activism and governance initiatives, and represent CalPERS within the investment industry and among lawmakers and press.

Those who haven’t spent 15 years in a senior investment role need not apply, and those that do are expected to stick around for at least five years to ensure they make an impact as a “strong, visible leader” for the Sacramento-based fund.

Specifically, the ideal candidate will have hands-on investment management experience, a strong understanding of asset allocation, risk management, and investment strategies, and the ability to work collaboratively with governing boards and staff members. The new CIO must also embrace CalPERS’ investment beliefs and demonstrate commitment to diversity and inclusion, the fund said.

Candidates should maintain high ethical standards, integrity, strong interpersonal and mentoring skills, and “possess self-confidence as the ‘face’ of CalPERS externally, tempered by diplomacy, humility, grace, and good humor.”

An undergraduate degree is required and more advanced degrees as well as professional certifications such as the Chartered Financial Analyst are highly desired, CalPERS said.

The annual salary will range between $408,000 and $612,000 depending on the qualifications of the candidate with performance-based incentives to be determined.

CalPERS is currently receiving resumes and cover letters via recruitment firm Korn/Ferry International. Finalist candidates will be invited to interviews at the fund towards the end of 2014. 

Related Content: Who Should Be CalPERS’ New CIO?, CalPERS Seeks a New CIO

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