Rocked in past years by scandal and financial problems, a state agency that insures California businesses has recruited a team of high-priced managers from the private sector to turn it around — and while recovery is underway, some in and out of the Capitol are experiencing sticker shock.
A California public agency that offers workers’ compensation insurance coverage to employers has recruited a high-priced team of former executives from the private sector to turn it around after years of scandal and financial problems.
“It sounds completely out of proportion for executives at any state agency to be making so much money, considering the governor makes only about $200,000 a year,” she said. “The challenge we have is it’s a billion-dollar insurance company,” Lanier said. “There’s not another one of those in state government, so we need and value talent and expertise from the insurance industry.”
In 2014, the board appointed Vernon Steiner as president and CEO of State Fund, who touted his 30 years of experience in the insurance industry. He received a base salary of $450,000 as well as various performance-linked bonuses.
Glazer voted for the five new executive positions after he was assured in early 2017 that the committee would get periodic reports on the compensation. Committee members including Glazer said recently that they think an oversight hearing should be held by the Legislature.The committee last heard from Steiner at a hearing in April that focused on the insurance industry, but not executive compensation issues.
“It’s a very cushy gig,” said Mattoch, who now works as an attorney for Consumer Watchdog. “They don’t do much of anything and they get paid a ton.” Other executives who receive performance and incentive payments include the chief operating officer, whose annual compensation this year is $566,000, and the chief information officer, whose yearly compensation is $588,000.
Both of Steiner’s sons have worked at the agency — his son Bennett was hired by the agency last year and is an underwriter making $50,400 annually.
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