Jones Apparel Group, Bristol, Pa., withdrew a management proxy proposal to amend its executive stock option plan, opposed by the $151 billion California Public Employees Retirement System, Sacramento. CalPERS was "concerned the pay package for incoming CEO Peter Boneparth is not tied to performance, it said in a statement.
"The amendments under the proposal would have increased the number of shares available under the plan and would have prohibited the re-pricing of stock options, according to a company statement.
But Mr. Boneparth, president and CEO-designate, said in a statement, "After reflecting on input from shareholders, (we) have concluded that stockholders interests are better served at this time by a reconsideration of incentive compensation arrangements.
Bruce Raynor, president of the Union of Needletrades, Industrial and Textile Employees, which campaigned for institutional investors to oppose the resolution, described the pay plan as "excessive and a breach of faith with shareholders and workers.