The officials responsible for investing hundreds of billions of dollars in pension funds have turned on New York Stock Exchange chairman Mr Dick Grasso.
They have demanded his resignation, arguing his $140 million pay package compromised his role as regulator.
New York comptroller Mr Alan Hevesi demanded Mr Grasso's resignation and issued a statement criticising the controversial pay package. Mr Hevesi is the sole trustee overseeing the roughly $105 billion New York State pension fund.
Earlier in the day, California treasurer Mr Phil Angelides and the heads of the California Public Employees' Retirement System and the California State Teachers' Retirement System sent an open letter to Mr Grasso asking that he step down as head of the world's largest stock exchange.
Mr Angelides, who sits on the boards of both pension funds, told reporters that Mr Grasso's pay package had been too large given his role as a regulator with influence over listing standards.
A $5 million bonus was granted by the board to Mr Grasso after he got the exchange up and running quickly after the September 11th, 2001, attacks. But Mr Angelides said no other public servants, including police and firefighters, got that much money "for doing the right thing by America".
The NYSE, as a not-for-profit corporation, is not subject to the same rules of disclosure as public companies. But investors were shocked last month when the exchange said Mr Grasso was taking home almost $140 million in deferred compensation. Two weeks later it said the Mr Grasso (57) was entitled to an additional $48 million but would forgo that sum.
Mr Grasso, NYSE chairman since 1995, has worked for the exchange his entire career, joining the exchange 35 years ago.