Richard Grasso
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Richard Grasso was chairman and chief executive of the New York Stock Exchange from 1995 to 2003, the culmination of a career that began in 1968 when Grasso was hired by the Exchange as a floor clerk. After the September 11, 2001 Terrorist Attacks, Grasso became the reassuring public face of the Exchange, and was much commended for his role in helping restart operations.
In September 2003 it was revealed that Grasso had been given a deferred compensation pay package worth almost $140 million. This caused immediate controversy, as the hand-picked compensation committee consisted mainly of representatives from NYSE-listed companies over which Grasso had regulatory authority as head of the Exchange.
Following criticism of the deal from SEC chairman William H. Donaldson and several pension fund heads (who control some of the largest pools of equity investment capital in the U.S.), the Exchange board met and in 13 to 7 vote asked Grasso to leave. On September 17, 2003, Grasso stepped down.
On May 24 2004, Grasso met with the NYSE for a civil suit, demanding repayment of the majority of a nearly $140 million pay package. According to the suit, Grasso, along with former NYSE director Kenneth G. Langone, misled the NYSE board about the details of his pay package, beyond that of comparable chief executives.
On May 26, Grasso countersued the Exchange and its current chairman, John Reed, seeking payment of unpaid portions of his pay package, as well "besmirching his name". Grasso went on to place a 1500-word editorial article in the Wall Street Journal, detailing this countersuit, as well as his grievances with New York Attorney General Eliot Spitzer.
FARC Controversy
On June 26, 1999, Reuters reported that Grasso met with Colombian rebels, the FARC, in an article entitled "NYSE Chief Meets Top Colombia Rebel Leader". The FARC is considered a terrorist organization by the U.S. State Department (on its list of Foreign Terrorist Organizations) and is alledgedly responsible for kidnappings and narcotics traffiking in order to bankroll their revolutionary activities (see: narcoterrorism).
The article quotes Grasso, "I invite members of the FARC to visit the New York Stock Exchange so that they can get to know the market personally." Some find the meeting inexplicable, considering that the FARC has anti-capitalist ideals and has no officially recognized financial clout. Grasso told reporters that he was bringing "a message of cooperation from U.S. financial services."
External links
- About.com: Comparing Richard Grasso's Compensation (http://mutualfunds.about.com/b/a/026975.htm)
- Washington Post: NYSE Ousts Grasso as Chairman (http://www.washingtonpost.com/ac2/wp-dyn/A26875-2003Sep17)