PensionsFebruary 8, 2024

CalSTRS Begins Search for Next CIO

A job posting lists requirements for Chris Ailman’s successor.

Reported by Matt Toledo

The California State Teachers’ Retirement System has begun its search for a new CIO, releasing a job posting for the position Thursday morning.

“CalSTRS’ CIO must possess exceptional leadership qualities, investment management capabilities and demonstrated excellence leading people,” the posting states. “The ideal candidate must have worked in a complex financial environment within the public sector or a large institutional setting. An advanced degree is desirable.”

The CIO is responsible for providing strategic investment leadership for the $327 billion pension fund, the second largest public fund in the U.S. and the largest educators’ pension fund in the world.

The candidate for the Sacramento-based position will be succeeding Chris Ailman, who has served as CIO since 2000, making him one of the longest-tenured CIOs of any public fund.

The job posting lists some of the following requirements;

Minimum 10 years of experience in investment management;
Bachelor’s or master’s degree in business administration, economics, finance or a closely related field;
Knowledge of and ability to implement diversity, equity and inclusion principles;
Demonstrated commitment to creating and sustaining a diverse, inclusive and equitable workplace;
Demonstrated ability to engage with diverse stakeholders, including boards, CEOs, legislative bodies and external partners;
Track record of successful asset allocation, risk management and investment strategy implementation;
Track record of creating and executing long-term investment plans that align with an organization’s strategic goals and objectives; and
Ability to represent the organization in public forums, advocate for the investment program and maintain credibility within the investment community.

The posting lists a salary range of $408,000 to $612,000, with a 5% monthly base pay increase if the candidate holds a Chartered Financial Analyst, Certified Commercial Investment Member or Chartered Alternative Investment Analyst certification. Additionally, a performance-based award of up to 200% of the annual salary is available.

There could be crosstown competition in Sacramento in the search for a CIO. The California Public Employees’ Retirement System recently conducted the first round of interviews in a search for its new CIO, seeking a successor to Nicole Musicco, who stepped down in September 2023 after 18 months. CalPERS expects to have a candidate identified during the first quarter of 2024.

The final deadline for applications is March 10. Ailman will step down from his position on June 30 but will stay on as an adviser to his successor until the end of 2024 to ensure a smooth transition.