By Staff Writers, INSURANCE JOURNAL
January 6, 2020
Salaries at California’s State Compensation Fund are being called into question by some people in the state Capitol, it’s being reported.
State Fund recruited a high-priced team of former executives from the private sector to turn it around after years of scandal and financial problems, according to an article over the weekend in the LA Times.
The new hires are earning six-figure salaries that dwarf others in state government, as the agency rebuilds following investigations in years past that led to the removal of top managers and mass layoffs forced by loss of business, according to the Times article.
“Bonuses and incentives awarded by State Fund’s board have boosted compensation to more than $500,000 each for its seven top managers including its CEO, whose annual pay is some $732,000 — more than three times the $210,000 salary of the governor,” the article states. “The salaries have prompted some lawmakers to call for an oversight hearing to determine whether the compensation is justified.”
Consumer Watchdog, a group that keeps tabs on the insurance industry, in an interview with the paper called the pay “out of proportion for executives” at any state agency, considering the governor makes only about $200,000 a year.
State Fund on Monday anounced plans to distribute a roughly $55 million dividend to its qualifying policyholders with policies that took effect between Aug. 20 and Dec. 31, 2019.
Through 2019, State Fund is reporting approximately $1.2 billion in premium and $110 million in realized capital gains.