Grasso To Countersue In Dispute Over Pay Package

by Glen Shapiro, LawAndTax-News.com, New York

27 May 2004

Following the revelation on Monday that New York's Attorney General, Eliot Spitzer, has launched a lawsuit against former head of the New York Stock Exchange (NYSE), Dick Grasso, over the latter's more than $200 million combined pay and severance package, Mr Grasso revealed that he intends to sue his former employer for compensation and damages.

At a press conference held earlier this week, Mr Spitzer argued that:

"You can't pay the head of (a) not-for-profit (organisation) that much money. It's simply too much, it's not reasonable, it's not right, it violates the law."

Said to be seeking the return of around $100 million, the Attorney General has accused Mr Grasso of misleading NYSE directors with regard to the comparative size of executive compensation packages in other companies, and of setting his own performance benchmarks deliberately low, in order to easily surpass them.

Writing in the Wall Street Journal on Tuesday, Mr Grasso hit back angrily at the charges.

"I have instructed my lawyers to file a counterclaim for the compensation that is still owed to me, as well as to seek appropriate damages for the leaks orchestrated by Mr Reed," he announced, making reference to his temporary successor as NYSE chairman, John Reed.

"Those who thought they could break me with their repeated media leaks badly underestimated my character and resolve. I look forward to addressing them in court where they can no longer hide behind Mr Spitzer's cloak," he added.

The former stock exchange boss additionally pledged in his Wall Street Journal article to donate any 'winnings' to charity, explaining that:

"I will derive considerable pleasure knowing that some public good ultimately resulted because of the immoral and dishonest behaviour of those who forced my departure and besmirched my name."

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