The CalPERS Board of Administration voted Sept. 17 to approve an incentive award of $766,782 for Chief Executive Officer Marcie Frost for fiscal year 2024–25 and set her 2025–26 base salary at $619,440, the board staff reported. Michelle Tucker, CalPERS staff member, presented the compensation calculations to the board, saying the amounts were determined "in accordance with the board's policy using the assigned ratings and weightings and the CEO's fiscal year 24, 25 base salary."

Why it matters: the CEO’s pay package drew sustained public comment at the meeting. Several retirees and advocacy groups urged the board to reject or reduce the award, citing CalPERS’ funded status and recent premium increases. Supporters of the CEO pointed to organizational accomplishments highlighted by staff.

Public comment during the meeting included remarks from Margaret Brown, president of the Retired Public Employees Association (RPEA). "This bonus is wrong. It's excessive, and it must end," Brown said, arguing that materials released by CalPERS during the board election period amounted to a one-sided advocacy for private equity and reflected poor timing. Al Garvey, vice president of RPEA, called the package "disproportionate compared to other pension funds" and urged restraint while the fund remains underfunded.

Other callers and speakers echoed concerns about CalPERS’ funded level and investment performance. Deb Berger, a retired CalPERS member, asked why a salary increase or bonus should be considered when the state faces a budget deficit and health premiums have risen. Steven Palmer, a member, said the CEO’s performance "does not warrant a salary increase or incentive payment" and cited comparisons between CalPERS' multi‑year returns and the S&P 500.

The board took a roll-call vote on the item. The tally recorded on the transcript included a majority of ayes; board member Melissa Willette voted no. After the vote, Board member Jose Luis Pacheco explained his abstention on related compassion grounds in other items and said he had abstained from the action out of loyalty to CalPERS members and concern over the fund’s underfunded status. "But out of loyalty to the CalPERS members and to the system’s long term health, I abstained from the vote," Pacheco said.

Procedural note: the board’s compensation policy requires an annual closed‑session evaluation; the action taken in open session implements that closed‑session recommendation. Staff said the committee’s closed‑session evaluation and the incentive metrics produced the dollar figure reported at the meeting.

The board also heard extensive public comment opposing the award and warning about the fund's funded status; supporters of the CEO pointed to achievements and to established board compensation policy as the basis for the award.