The legendary hard man England left-back, nicknamed Psycho, played 50 times for the Hammers between 1999 and 2001, scoring three goals in the process including a memorable free-kick against Tottenham Hotspur.
He was eventually withdrawn by boss Harry Redknapp and scans later revealed he had suffered what was a career-threatening injury.
The former Nottingham Forest player and manager spent a spell on the sidelines but did make a comeback before moving to Manchester City.
If Pearce was a cult hero to Hammers fans, the same cannot be said about their current manager Sam Allardyce.
While it is widely recognised amongst most true West Ham supporters that Big Sam has done a good job at the club during his four-year tenure so far, the dissenting voices are increasing in number and volume.
Speculation has been rife that the 60-year-old will leave the club when his contract expires at the end of the season. And a host of top European managers have been linked with the post, including favourites Rafa Benitez and Slaven Bilic.
But Pearce, who was named West Ham's Hammer of the Year during his brief spell at Upton Park to join a prestigious list which includes the likes of Bobby Moore and Sir Trevor Brooking, says he thinks the club's co-owners David Sullivan and David Gold will be making a big mistake if they let him leave.
"The situation (the unrest and speculation) is ludicrous," Pearce told BBC's Final Score show.
"He's an outstanding manager. Yes, West Ham have had a bad period and have had injuries but I think they have come out of that now.
"If I was at West Ham, I would not let him go."
Also on the Final Score panel were former Blackburn Rovers, Celtic and Norwich City star Chris Sutton and ex-Spurs favourite Garth Crooks.
Both pundits agreed with Pearce and backed the job Allardyce has done at the Boleyn.