NYSE Report Dubs Grasso Pay 'Excessive'

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

04 February 2005

A new report released on Wednesday by the New York Stock Exchange has argued that former chairman of the NYSE, Richard Grasso was permitted too much control in setting his own compensation levels, including his final $200 million combined pay and severance package, which led New York's Attorney General, Eliot Spitzer to launch a lawsuit against him.

The report, compiled by attorney Daniel Webb at the request of the new NYSE leadership, suggested that Mr Grasso's "excessive" and "unreasonable" compensation levels were approved by the NYSE board as a result of his placing of close friends on the compensation committee.

It went on to reveal that Grasso's contracts during his time at the head of the Exchange included significant lump sum payments which were allegedly part of his retirement fund. In addition to receiving a higher than average salary and retirement benefits, the former chairman's compensation package also reportedly included the use of a private plane and car service, and security.

Despite the disapproving tone of the Webb report, however, Mr Grasso believes that it may help to clear his name. In a statement released this week, Grasso spokesman, Eric Starkman argued that:

"Every dime of compensation was voted on unanimously by a compensation committee that, working with its consultants, decided that Dick Grasso was worth a great deal to the NYSE. The Webb report does not take issue with Dick Grasso's exemplary performance as CEO of the NYSE, but questions the business judgment of some of the most sophisticated men and women in the financial world."

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