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Profile, Michael Cohen
Profile, Michael Cohen
Chief Operating Investment Officer at CalPERS
Michael Cohen, Rhiannon Farr
7 min read
Knowing your organisation
Knowing your organisation
As the chief operating investment officer at CalPERS, Michael Cohen strives for long-term solutions in the public sector. Interview by Rhiannon Farr.
Sikander’s work spans an extraordinary range. One day, he may be steering the strategic support behind a multi-million-dollar telecom infrastructure acquisition; the next, guiding the expansion of a university’s student intake or implementing HR and culture initiatives across 16 diverse businesses – from energy and petrochemicals to agriculture, food, and digital infrastructure. He also lends his expertise to a philanthropic foundation that oversees schools, colleges, a university, and a science museum, reinforcing his belief in the importance of giving back.
Yet what clearly drives him is not the scale of these responsibilities but the spirit of collaboration. ‘It’s never about doing everything yourself: it’s about shared purpose. It’s about listening deeply, staying close to people, empowering teams, and trusting them to lead,’ he says.
Firstly, in 2022 you pivoted from CFO to your current role as Chief Operating Investment Officer/Chief of Staff. What lessons have you brought to the CoS role from your previous experience as CFO?
Firstly, in 2022 you pivoted from CFO to your current role as Chief Operating Investment Officer/Chief of Staff. What lessons have you brought to the CoS role from your previous experience as CFO?
I certainly brought with me some technical understanding of our investment strategy from my CFO role of coordinating our Asset Liability Management process.
More important than the specific program knowledge, however, has been my understanding of CalPERS as an institution. Historically, our Investment Office has been somewhat isolated from the rest of the pension and health administration enterprise. Yet, so many of the Investment Office’s priorities are integrated with the rest of the organisation—such as recruiting and retaining a talented team and implementing technology projects. Since I’ve moved over to the Investment Office, my pre-existing relationships with the organisation has been invaluable in getting things done as smoothly as possible.
In the public sector, and specifically at CalPERS, how has innovation evolved over the years? How do you effectively implement these new ideas and strategies?
In the public sector, and specifically at CalPERS, how has innovation evolved over the years? How do you effectively implement these new ideas and strategies?
I have spent my entire career in the public sector and innovation never comes easy. In California, we’ve had a long history of fiscal volatility, with surpluses quickly followed by huge deficits. Those deficits, and the crises surrounding them, tends to create opportunities for innovation as government searches for ways to become more efficient and preserve services at a lower cost. While that recipe has created some successes in my career, it is also not the best environment to innovate because everyone wants to see the improved results immediately without taking the time to think everything through and for proper implementation time.
On the other hand, at CalPERS as a pension fund for public employees, we have the benefit of being able to think well down the road. We’ll be paying retirement benefits to our 2.4 million members for decades into the future. For example, we are in the middle of an overhaul of the way we approach investing—through initiatives to improve our talent and culture, data and technology, sustainable investing, and asset allocation. We expect these innovations will significantly improve our investment returns over the long term. While I, of course, would love all of those initiatives to be successes immediately, we have the luxury to focus on getting them right over time.
What are some 'words of wisdom' for prospective chiefs of staff in the public sector?
What are some 'words of wisdom' for prospective chiefs of staff in the public sector?
In California, as I imagine is the case across the country, chiefs of staffs have traditionally been thought of as jobs working directly for elected officials such as the Governor and legislators. But thankfully, the concept has begun to expand into administering agencies as well. So, the first thing I would say is don’t look only at job titles that include “chief of staff.” You’re probably not going to find too money of them. More important is looking for job opportunities that encompass the key aspects of being a chief of staff—working with lots of different program areas, being flexible in how you think about your job duties, and being called on regularly to provide critical and strategic thinking.
How do you use your knowledge and experience as an investor in your role as CoS?
How do you use your knowledge and experience as an investor in your role as CoS?
Unlike most of our investment team, I don’t have years of experience in investment portfolio management. My experience as the CFO of CalPERS and California’s Director of Finance, however, have taught me the ability to quickly assess technical information and be inquisitive. So, as part of our internal investment committee deliberations, I bring that ability to ask questions to make sure the team has thought through all the risks and possibilities in their underwriting. I view the investment decisions we make as very similar to the budget decisions I made for the state—for example, “is a billion dollar investment the highest and best use of the taxpayer funds” is roughly the same way I thought about funding a major program expansion.
Author Bio
Michael Cohen
Chief Operating Investment Officer at CalPERS
Michael Cohen was appointed chief operating investment officer in December 2023, where he’s responsible for overseeing investment office operations, including data, technology, and performance, investment compliance, business administration, investment relations, talent management, and culture.
He brings more than 25 years of experience in government, with expertise in executive and financial leadership to his position. In this role, he serves as the Chief of Staff to the Chief Investment Officer. As a member of the executive leadership team, he also provides expert consultation and advice to the CalPERS Board.
He initially joined CalPERS as the chief financial officer in October 2018. In that capacity, he was responsible for managing all of CalPERS' financial processes, including budgeting, accounting, cash management, financial planning and analysis, and risk management projects.
Michael earned a master's degree in public affairs from the Lyndon B. Johnson School of Public Affairs at the University of Texas, and a bachelor's degree in urban studies from Stanford University.
Author Bio
Rhiannon Farr
Assistant Editor
Rhiannon is a versatile communications professional who thrives at the intersection of creativity and strategy, delivering exceptional digital experiences.
She holds a BA in English Literature from Cardiff University and is currently deepening her academic pursuits with a Masters in Literature and Art at University of Oxford. Rhiannon’s drive for storytelling and visual communication fuels her work, whether she’s crafting compelling narratives or designing engaging content.