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The following statement is by Fred Buenrostro, Chief Executive Officer:
"I want to publicly state what I have told the Board: I have reached a decision to retire from public service. Media speculation about reasons for my departure are unwarranted and incorrect. I had previously chosen not to publicly discuss my conversations with the Board to give them an opportunity to pick the timing of an announcement. But recent press reports compel me and the Board President to speak on this topic today. I have been fortunate to have been associated with CalPERS since the early days when I worked for State Treasurer Jesse Unruh, and CalPERS has been a part of my life for several decades. While my retirement is forthcoming in order to pursue private sector opportunities, today I will continue to focus on meeting the needs of our Board, staff, members, and employers."
CalPERS President Rob Feckner issued the following statement:
"Today, I wish to officially confirm that the Board and its Chief Executive Officer Fred Buenrostro are in discussions about the timing of his pending retirement from public service. Mr. Buenrostro, who has championed the need for the Board to have a robust succession management plan, has for a long time emphasized that he did not plan to remain at CalPERS for many more years. Like so many other CEOs and Senior Executives here who have given up lucrative private sector opportunities to serve the public, he has over time talked more and more about wanting to consider the time left in his career to pursue exciting opportunities in the private sector. It is true that in the past month, the Board and he have had formal discussions about the topic of retirement and precise discussions about the timing for retirement.
Mr. Buenrostro has been very gracious in waiting to make sure that when he leaves, he is leaving the organization well suited for the future. We too have discussed our desire to ensure that we do not hold him up any longer to pursue the kinds of opportunities in the financial services industry that are likely to await him.
We are speaking out today because of erroneous speculation contained in some media reports as to the reasons why Mr. Buenrostro might be leaving. This is indeed unfortunate. It is our policy not to comment on such speculative reports but in fairness, we can not allow inaccurate news reports by anonymous sources to linger unaddressed. Our silence should not send the wrong signal.
I speak for the entire Board when I say that Mr. Buenrostro has served with distinction and has worked effectively over the last six years as our CEO.
He is among the most seasoned public administrators we have had in this position and been an outstanding public servant. He has decades of experience as a representative to the CalPERS Board, having served numerous controllers and state treasurers, and having served as the Chief Deputy of the Department of Personnel Administration. Anyone who knows Mr. Buenrostro knows he has a tremendous passion for the protection of defined benefit plans for public servants, for good corporate governance, shareowner rights, and for environmental investing. And he has been a champion for diversity in all we do. He is especially proud that our employees find this an exceptional place to work.
Media reports that raise a specter of controversy between him and the Board are exaggerated. Anyone who knows CalPERS knows that part of our success as an organization is our willingness to speak frankly and debate the issues. It comes with the territory.
CalPERS Board and Staff are focused on moving forward with recruitments for the two top investment positions. We are progressing well in our search regarding the Senior Investment Officer for Global Equity. We have designated the very experienced and talented Anne Stausboll as Interim CIO, and the transition is going smoothly with our Chief Investment Officer. And we are putting the building blocks in place for a search for the new CIO.
As we transition into our search mode, we support Mr. Buenrostro and appreciate the support he has offered us in selecting a successor. While the timing is a bit unfortunate, the Board remains positive and confident in moving forward. We have good processes in place and deep bench strength in Investments and among our capable leadership team, all of which are a credit to Mr. Buenrostro’s six years as CEO."
