CalPERS announces plan to reform executive compensation practices.

The California Public Employees' Retirement System's Board of Administration has approved a plan advocating executive compensation reforms on a national level. CalPERS will wage a campaign against targeted individual compensation committee directors who support egregious pay packages and the companies that have the worst compensation practices. The retirement system plans to work with the Securities and Exchange Commission, the financial exchanges, and the compensation consulting industry to address issues of transparency in executive compensation.

Under the plan, CalPERS will pursue six major pay-for-performance initiatives over the next three years:

* Submitting a comprehensive proposal to the SEC in 2005 that calls for greater transparency of compensation packages.

* Strengthening listing standards at the securities exchanges and self-regulatory organizations to promote greater communication and...