CalPERS Names Kenneth Marzion As Interim Chief Executive
By Jon Ortiz, The Sacramento Bee, Calif.
May 13–Amid speculation about ongoing tension between board members and investment executives, the California Public Employees’ Retirement System on Monday named Kenneth W. Marzion as its interim chief executive.
Marzion replaces outgoing CEO Fred Buenrostro, who is retiring at the end of June to enter the private sector after six years at the pension fund’s helm. Buenrostro will be the third high-profile Cal- PERS official to leave in as many months.
The departures come as the pension fund is moving about $30 billion in assets from stocks and bonds into investments such as real estate and private equity. It also is putting more money into infrastructure projects and commodities.
Marzion’s appointment came at the start of the board’s four-day meeting. After the session, CalPERS board member and state Treasurer Bill Lockyer said that while there may have been disagreement between some board members and fund executives, it wasn’t enough to shove anyone out.
“I think there was some friction, but it wasn’t (over) policy or political disagreements,” Lockyer said. “The speculative gossip is inaccurate.”
Buenrostro’s decision to retire effective June 30, the last day of CalPERS’ fiscal year, came shortly after Chief Investment Officer Russell Read said he will also leave that day to pursue investments in emerging environmental and clean technologies.
Anne Stausboll, CalPERS’ chief investment operating officer, will fill Read’s position until a permanent replacement is named.
Read’s announcement came just weeks after one of CalPERS’ top investment advisers, Christy Wood, left for a new job.
The trifecta of departures fueled some speculation in the finanical press that something was amiss at CalPERS, which controls about $250 billion in assets for 1.5 million publicly employed workers and retirees. But no named sources have surfaced to back up the rumors.
Marzion, 53, has been with CalPERS for 32 years. He served most recently as assistant executive officer at the fund’s unit that provides customer service to more than 2,500 public sector employers.
“We appreciate Ken agreeing to serve as interim CEO and look forward to working with him,” said Rob Feckner, president of the CalPERS board, in a statement.
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