By admin 
The person at the helm of the California Public Employees’ Retirement System got a hefty compensation increase Wednesday morning, as the agency’s board increased CEO Marcie Frost’s compensation.
Read more CalPERS CEO Marcie Frost’s bonus increases 50% as salary hits ceiling
Frost’s new salary jumped 6.63% to $641,250 compared to last year’s roughly $601,400. As her new wage hits the salary range ceiling, Frost’s bonus skyrocketed nearly 50% from about $766,700 last year to nearly $1.15 million.
The executive’s new bonus coincides with the pension fund’s 2025-26 return of 14.8%, according to previous Sacramento Bee reporting, bringing the fund’s assets to more than $637 billion as of June 30, the end of the fiscal year. Comparatively, Frost’s previous $766,7000 bonus coincided with CalPERS’ return of 11.6% in 2024-25.
Board President Theresa Taylor, in a statement, said the adjustments reflect CalPERS’ performance while under Frost’s control.
“Marcie Frost is a CEO on top of her game and delivering excellent results for CalPERS members,” Taylor wrote in a statement. “During her 10 years as chief executive, our funded status has risen from 65 percent to 85 percent. Investment returns have consistently outperformed the discount rate of 6.8 percent, and this past fiscal year totaled 14.8 percent.”
Retired Public Employees’ Association of California has criticized the increase. The group points to a significant compensation jump since fiscal year 2016-17 when, according to CalPERS, the agency’s CEO made roughly $300,000 in salary coupled with an $80,190 bonus.
Read more Feds must declare critical habitat for endangered Sierra Nevada fox, judge rules
“I would urge the board to toss this proposal into the nearest trash can where it belongs,” RPEA member Evelyn Roverson said.
Margaret Brown, president of RPEA, said the increase is also about trust, saying retirees could grow skeptical of the agency if they believe employees work for individual benefits rather than the holistic health of the pension fund.
“You cannot ask members, employers and taxpayers to respect the CalPERS pension system while its leadership embraces compensation practices that appear completely disconnected from public service,” Brown said.
Brown also said the compensation is starting to reflect that of Wall Street, a sector known for higher wages than seen in public service, bringing the debate whether the agency would risk funds to attract better leadership for optimal results versus risking results for lower salaries that may attract a weaker workforce.
Read more Dodgers’ Blake Snell Exits Wednesday’s Game After First Inning in Concerning Development