The board met in Long Beach Thursday and today to limit the salaries of new CSU presidents to 10 percent above the base pay of previous presidents.
The CSU system has been under fire from students and faculty for offering lucrative contracts to its executives when its budget is being slashed and tuition costs are on the rise.
The board is in the process of hiring five new presidents at its campuses, including Northridge, Fullerton and San Bernardino.
The board capped salaries at $325,000 after an outcry over a $400,000 pay package approved for a new president last year when tuition shot up 12 percent.
The new policy will establish a salary ceiling of $325,000 or raise the salary by no more than 10 percent of the pay received by the outgoing president.
The board approved the new policy without comment. Trustees are currently searching for five presidents in the 23-campus system, a turnover administrators said was unprecedented.
The Associated Press contributed to this report.