NYSE's reform plan 'inadequate'

AMERICA'S largest public pension fund, California Public Employees' Retirement System (Calpers), has made a blistering attack on the reform plan for the New York Stock Exchange.

The fund was instrumental in ousting NYSE chairman Dick Grasso in September amid outrage over his $140m (£83.6m) pay deal.

It says interim chairman John Reed's 'woefully inadequate' plans do little to address fundamental issues of governance.

Sean Harrigan, president of the board, said: 'The bottom line is that investors' confidence will not be restored by a plan that merely reorganises, rather than truly reforms, this organisation.'

Reed's plan envisages a new board of eight to take over from the previous 27 but would still let the Exchange regulate itself.

Harrigan added that 'too much has happened' to allow the Exchange to regulate itself, 'particularly since the main board will not have a powerful enough representation by institutional investors'.

Opposition from such a large investor may put the plan in jeopardy when Stock Exchange members vote on the proposals on 18 November.