PeopleSoft Tying Pay to Performance

PeopleSoft will link 50 percent of its top executives’ stock pay next year to performance, according to TheStreet.com. It will also replace many stock options with restricted stock in its pay packages.

The large vendor of workforce management software had been under pressure to change its pay practices from the California Public Employees’ Retirement System, among other stockholders. The institutional investor advisory firm of Glass, Lewis & Co. had given PeopleSoft a “D” grade for its pay practices.

According to TheStreet.com, PeopleSoft also will not give execs a raise this year. Most of the pay of top management such as CEO Craig Conway will come in the form of special stock grants and other pay beyond base pay.