Fiduciary Counsel Sought by CalPERS

Robert Klausner, Former CalPERS Fiduciary Counsel

Full-time fiduciary counsel sought by CalPERS to provide specialized fiduciary advice to the system’s board and staff.

CalPERS announce that former(?)/current(?) fiduciary counsel Robert Klausner can bid for the same contract he’s being pushed out of… where he  quoted the lowest price per hour of the finalists.

According to Pensions&Investments (CalPERS issues call for fiduciary counsel), 

The advice will include recurring questions about conflicts of interest and the board’s responsibilities relative to its investment authority.

The board’s current fiduciary attorney Robert Klausner consults with CalPERS on a case-by-case basis, but CalPERS wants a permanent fiduciary counsel, Mr. DeAnda said. Mr. Klausner is eligible to bid, Mr. DeAnda said.

The RFP is available on CalPERS’ website.

Proposals are due by 5 p.m. PDT on Sept. 19. The RFP does not set a timetable for a decision.

Robert Klausner has come under attack several times in the blog naked capitalism:

• CalPERS Hired a Fiduciary Counsel Accused of Serious Misconduct Over More Than a Decade, Including Kickbacks, Failure to Disclose Conflicts of Interest (11/22/2015)
• CalPERS Board, Scandal-Ridden Fiduciary Counsel, Plan to Break California Law in Effort to Silence Board Member for Asking Too Many Questions, Seeking Records (12/1/15)
• Former California Official Blasts CalPERS CEO Anne Stausboll for “Betrayal of Trust” (12/7/15)
• CalPERS’ Tainted Fiduciary Counsel Robert Klausner Departs After NC Publicizes His Dubious History (8/22/15)

And there was this from CalPensions:

• CalPERS board at odds with maverick member (12/07/2015)

There are lots of serious issues here. Unfortunately, I have been less involved in monitoring governance at CalPERS and I have been more focused on corporate governance. There are only so many hours in the day. However, this certainly looks like a positive step, even if CalPERS is glossing over its importance. As Yves Smith notes at naked capitalism,

This development is clearly positive, since it would be difficult to find an attorney as compromised as Klausner.