SACRAMENTO — The State Compensation Insurance Fund, known as State Fund, a California public agency that offers workers’ compensation insurance coverage to employers, has been accused of scandal after it recruited a high-priced team of former executives from the private sector to turn it around after years of scandal and financial problems.
Employees are earning six-figure salaries that are much higher than other state government agencies.
This has raised questions and concerns from some in the state Capitol who question the cost 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.
Its 11-member board of directors, which is appointed by the governor and legislative leaders, has become a soft landing spot for former lawmakers and other political insiders.
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 salaries have prompted some lawmakers to call for an oversight hearing to determine whether the compensation is justified.
At present, there has been no formal investigation filed into the State Fund.