Calpers chief executive follows his CIO out of office

April 29, 2008

Alexander Campbell, Risk Magazine

29 April - Fred Buenrostro, chief executive of the $244 billion California Public Employees' Retirement System (Calpers), has resigned, less than a week after the departure of the chief investment officer, Russell Read.

Buenrostro announced his departure yesterday in the wake of media reports that the Calpers board disagreed with the aggressive investment strategy that he and Read had put in place. Calpers, based in Sacramento, had moved into foreign equity, private equity and alternative investments, and infrastructure investment, and the board reportedly wanted to ensure that only union labour was employed on Calpers-funded projects.

No successor has yet been named for Buenrostro, who has been CEO since December 2002, though the scheme's president, Rob Feckner, said that Buenrostro "has championed the need for the board to have a robust succession management plan". He added: "Media reports that raise a spectre of controversy between him and the board are exaggerated."

Read announced his resignation on April 23. He intends to pursue a career in environmental investment. After he leaves on June 30, he will be temporarily replaced by the chief investment operating officer, Anne Stausboll.

In January, the scheme's senior investment officer for global equity, Christianna Wood, resigned to join the New York hedge fund manager Capital Z Asset Management. No successor has yet been named.