CalPERS presents detailed 2025 executive succession plan; participation will not guarantee promotion

CalPERS presented an information update on its 2025 executive succession-planning program on March 17, detailing a multi-step application and talent-review process, position profiles, and how the system will be integrated into a planned Oracle 'My HR' platform. Michelle Tucker of CalPERS Human Resources described the approach as an enterprise-level effort to build leadership continuity while complying with CalHR guidance and industry best practices.

Tucker said the program focuses initially on executive-level positions, including statutory and senior leadership roles, and will expand to the broader organization. The process combines environmental scans, incumbent interviews and consolidated position profiles that list current and anticipated future functions, competencies and program responsibilities. Applications will include a candidate self-evaluation, a talent-review panel assessment, and performance and potential scoring. The candidate evaluation will use an industry-standard nine-box grid (performance vs. potential) to categorize top talent, next-ready, and emerging leaders and to inform individualized development plans.

Tucker emphasized that CalPERS is a civil-service employer and that participation in the succession program is voluntary; candidacy does not replace or alter the open recruitment and merit-based selection processes required for state positions. "Participation does not guarantee placement in any future CEA or executive or investment leadership position and applying doesn't guarantee that you'll necessarily be part of this first wave of work," Tucker said.

Committee members asked detailed questions about the proposed demographic and disability survey elements, the scope of the potential assessment and panel composition. Board member Jose Luis Pacheco asked how robust the disability-status field would be; Tucker said the survey will mirror CalHR fields and ask whether an employee has a disability status and provide examples, but it will not solicit private diagnostic details. Director Lorena Ortega noted the CalHR survey is publicly available and can be refreshed by employees.

Staff described three stages for candidate review: 1) prepare and review application materials, 2) talent-review panel meetings with HR and key stakeholders, and 3) candidate ranking/evaluation, after which selected candidates receive tailored development plans and assignments (mentoring, coaching, enterprise leadership projects). Tucker said the process aligns with CalPERS' incentive plans, performance management and employee engagement measures and that a talent profile capability in the new HR system will permit ongoing tracking and aggregation of demographic metrics.

The committee took no formal action on the informational presentation but requested staff to continue developing supporting technology, candidate materials and training resources. Tucker closed by noting next steps: benchmarking compensation for statutory positions, an education session on incentive metrics in April, and final recommendations for 2025–26 incentive metrics at the June committee meeting.

Quotes and attributions in this report are taken from the meeting transcript and limited to the speakers listed.