NYSE Chief Dick Grasso Resigns
New York Stock Exchange (NYSE) Chairman DickGrasso resigned today, the Wall Street Journal's Online edition reported. His resignation comes in the face of a public outcry over his $140 million compensation that raised questions about NYSE's governance.
On August 23, 2003, Grasso agreed to a new contract as Chairman and CEO of NYSE. It was the announcement of this new contract that triggered much of the outcry. Read the contract announcement here.
Many, including large institutional investors, expressed concern about NYSE's ability to effectively regulate corporate governance of its members in light of Grasso's compensation.
Amid the hope that Enron-like scandals were behind us, news of what many viewed as exorbitant compensation for Grasso triggered an instant firestorm of criticism.
Read the NYSE's formal announcement of the Grasso resignation.
The NYSE has appointed a search committee for an interim CEO. Co-chief operating officers will continue to manage the Exchange.
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