California and New York....

Are completely nuts

State officials in New York and California called for the resignation of Richard A. Grasso yesterday, saying his enormous pay package was unconscionable for the chairman and chief executive of the New York Stock Exchange.

Though these officials have no authority over the exchange, they were joined by other leaders of their states' giant public pension funds. In all, the funds have about a third of their $340 billion in assets invested in companies listed on the exchange.

"We are absolutely incensed," said Sean Harrigan, the president of Calpers, the nation's biggest pension fund. His fund, covering California state employees, has a reputation for speaking out on matters of corporate governance and executive compensation.

"At a time in our history when the N.Y.S.E. should be a model for best corporate behavior, we are shocked and dismayed," he said.

Alan G. Hevesi, the comptroller of New York State and the manager of the country's second-largest pension fund, said Mr. Grasso could no longer be effective. "Mr. Grasso is a regulator among other things," Mr. Hevesi said. "You create the perception of a conflict of interest when those that you regulate pay you $200 million over time."

The comments, from pension funds with a considerable following in the investment community, are sure to weigh heavily on the exchange's directors. One director, who insisted on not being identified, said that at some point the board might need to acknowledge that no individual's interests outweigh those of the exchange.

While several of the board's 26 members have defended Mr. Grasso in recent days, the majority has been noncommittal, and some have called for a board meeting next week.

The disclosures about Mr. Grasso's pay have touched a political nerve, coming on the heels of corporate scandals and stories of excess executive pay, and the responses yesterday took on populist overtones.

"There needs to be a cleansing act," said Phil Angelides, the California state treasurer, who also called for Mr. Grasso's resignation. "The board and Mr. Grasso should sit down and agree to give the money back."

Gee, calling on the Chairman of NYSE to resign after their pension funds all go to hell? Here's an idea, how about you hold the managers of the fund(s) accountable, and fire them, instead of going after someone who had nothing whatsoever to do with said loss. Ah, but these people are good liberals and Mr. Grasso is a captialist dog. Also, you have to love the stones of Mr. Angelides for wanting to hold Mr. Grasso accountable for his "alleged" fiscal mismanagment of the California pension fund. How about you hold yourself accountable there Mr. Angelides and resign your post as the Treasurer of the State of California? Since the last time I looked your state had run up the red ink to the tune of 38 billion dollars. Mr. Angelides arrogance amazes even myself, and I have seen plenty of arrogant liberals. And just what does "There needs to be a cleansing act" mean? Sounds eerily like, I dunno, the Final Solution to me. Could you imagine if a Republican called for a cleansing act of the Democratic Party. The outcry would be enormous. Oh, but wait, since a nice liberal like Mr. Angelides says it, he gets a pass. Silly me.