First, a minor disclaimer:
While this article has nothing to do with California Governor Gavin Newsom (D) — not directly, anyway — the embattled governor is the perennial poster boy for pretty much everything that ails the no-longer-Golden State (says this proud Midwesterner).
Anyway, California’s troubled public pension giant CalPERS (California Public Employees' Retirement System), the largest public retirement system in the U.S. — which is facing a staggering $166 billion shortfall — has decided that what it really needs to turn things around is a brand spanking new "chief diversity, equity, and inclusion officer.
No, really.
The new hire, Shari Slate, will earn a base salary of $221,580, but according to her own LinkedIn profile and the CalPERS announcement — you can't make this stuff up — she brings zero background in finance or investment management experience to the table.
Incidentally, Slate describes herself in her LinkedIn profile thusly:
Purpose-Driven Executive | Senior Vice President | Corporate Purpose Evangelist | Champion for Inclusion & Collaboration, ESG and Human Capital Strategy | Board Advisor | Inspiring Inclusive Innovation
Sweet, huh? Please.
CalPERS insists the DEI role won’t affect financial decisions, though it’s unclear how promoting “equity-informed” investment principles can't impact its investment decisions — much less be in the best interest of California taxpayers and public sector retirees. (Can you spell "fiduciary responsibilities"?)
CalPERS said in a news release (emphasis, mine):
The California Public Employees’ Retirement System announced Monday [January 5] that it has hired Shari Slate as its new Chief Diversity, Equity, and Inclusion Officer.
Slate, a Sacramento area resident, has spent nearly two decades helping large companies work toward a purpose-driven culture that considers the needs and experiences of all employees, customers, and other stakeholders.
Most recently, she served as Senior Vice President and Chief Diversity, Equity and Inclusion Officer at CVS Health, whose businesses include not only CVS drugstores but also pharmacy benefits management and Aetna health insurance.
Prior to joining CVS, Slate was Chief Inclusion and Collaboration Officer and Senior Vice President at Silicon Valley giant Cisco Systems Inc., where she helped launch the Office of Inclusion and Collaboration in 2015.
[...]
At CalPERS, Slate will drive the ongoing effort to integrate diversity, equity, and inclusion across the organization and beyond with suppliers, contractors, and investment partners. She will be a member of the Executive Team and report directly to CEO Marcie Frost.
Frost said in the statement:
Shari brings the kind of leadership this moment calls for – connecting diversity, inclusion, and equity to trust, governance and our core values. She will help CalPERS continue to lead with our purpose, which is to deliver the best outcomes for the millions of people who depend on us for their retirement and health care benefits.
Translation — and I write as a former CFP (Certified Financial Planner) with 30 years' experience in portfolio management and optimization, asset allocation and rebalancing, and retirement planning:
ZERO — as far as I can see — of Slate's background qualifies her to be anywhere near the development and/or implementation of a roughly $555 billion retirement system that continues to operate with a steep deficit, while serving nearly 2.4 million members.
The CalPERS statement included a few other gems, including:
The Chief DEI Officer collaborates with the Investment Office,” and “collaborating with investment groups to integrate DEI into financial decision-making, advocating for equity-driven investment strategies, and ensuring that CalPERS’ investment portfolio reflects its commitment to sustainability, social responsibility, and equitable outcomes.By embedding DEI principles into its investment framework, CalPERS can drive systemic change within the financial ecosystem while aligning its investment strategies with its mission and values.
I'm shaking my head as I write, gang.
ALSO CHECK OUT: California's COVID Loan Debt Is Due, and Its Private Sector Employers Are Stuck With the Bill
From Golden to Broke: Billionaires Ditch Newsom's California, Take $1 Trillion With Them
Heck, what do I know? Other than everything I learned during a successful career in investment management, that is.
Oh, and to reiterate, I also know that the insanity of DEI has no business being included in the factors that "help" determine investment decisions — including the minimization of portfolio risk — but I suspect you already knew that.
In fact, I'm sure of it.
Editor’s Note: Do you enjoy RedState’s conservative reporting that takes on the radical left and woke media? Support our work so that we can continue to bring you the truth.
Join RedState VIP and use the promo code FIGHT to get 60% off your VIP membership!
Join the conversation as a VIP Member