Phil Angelides, California state treasurer, today urged CalPERS and CalSTRS to support stock plans that grant no more than 25% of total pay to the companys executives and directors, and no more than 5% of total pay to a companys top five executives. Also, equity pay plans which include stock options would have at least four-year vesting schedules.
In a press release, Mr. Angelides said he wants to encourage corporations to design broad-based equity pay plans for all of their employees, and to curb excesses in executive pay. The release cited studies showing that stocks of companies that give top management the smallest shares of options outperformed those that gave disproportionately high awards to top executives.
Spokesmen for the $131 billion California Public Employees Retirement System and the $90 billion California State Teachers Retirement System, both in Sacramento, did not return calls seeking comment by press time.