The Sacramento Bee reports that the trustees also agreed to a 6% boost in the salary ranges for its investment managers, chief executive officer and chief actuary. Senior portfolio managers would receive base pay ranging from $174,000 to $243,000 under the new scale.
Since 2004, seven top investment managers, including the chief investment officer, have left CalPERS (See CalPERS Selects New Chief Investment Officer ).
The 1% raise is aimed at bringing money managers’ salaries to the median pay at private institutional investment firms. CalPERS officials are compiling the overall cost of the pay increase.
Every two years, CalPERS commissions a survey of investment management salaries at banking and insurance companies nationwide and readjusts its pay scales to be competitive with the private sector, according to the Bee. The study conducted by Watson Wyatt Worldwide reported that base salaries for investment management positions nationally have increased 9% since 2004, and are projected to increase 3% annually over the next two years.