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Last Updated: Thursday, 8 January, 2004, 18:58 GMT
NYSE starts to reclaim Grasso pay
Richard Grasso
Mr Grasso insists his money was justly earned
Pressure is mounting on Richard Grasso, the former head of the New York Stock Exchange, over $140m (77m) he has received in deferred pay and benefits.

The exchange's board has asked the Securities and Exchange Commission and New York's attorney to pursue the case.

Mr Grasso resigned over the pay deal last September, despite claiming he was owed the money for 36 years of service.

Exchange members and regulators have been angered by the deal, however, arguing it was hugely over-generous.

Inappropriate conduct

The board's decision follows a reading of a report into the affair.

In a letter accompanying the report, interim chairman John Reed the board had determined that "serious damage has been inflicted on the exchange by unreasonable compensation of the previous chairman and CEO, and by failures of governance and fiduciary responsibility that led to the compensation excesses as well as other injuries."

The exchange has suffered in recent years from increased competition, as well as the decline in stock-market investment, and some argue that Mr Grasso has not managed it well.

Although the compensation package represented accumulated pay and benefits going back years, it was widely seen as inappropriate at a time when corporate America was being asked to behave more responsibly.




SEE ALSO:
New boss for NY Stock Exchange
18 Dec 03  |  Business
NYSE looks for Grasso successor
19 Sep 03  |  Business
NYSE chief resigns over pay row
18 Sep 03  |  Business
Profile: Richard Grasso
18 Sep 03  |  Business
Heat turned up on NYSE chief
16 Sep 03  |  Business
SEC questions NYSE chief's pay
02 Sep 03  |  Business
NYSE chief gets $140m payout
27 Aug 03  |  Business


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