NYSE Traders Petition to Replace Grasso
Fri September 12, 2003 11:07 AM ET
NEW YORK (Reuters) - Floor traders at the New York Stock Exchange are putting together a petition calling for new management to replace Chairman Richard Grasso, who is under the gun for his $140 million payout.
James Rutledge, an NYSE member who has asked the U.S. Securities and Exchange Commission to investigate Grasso's compensation, said he knew of the petition at the world's largest stock exchange.
"I am well aware of the petition," Rutledge said, confirming a report in The Wall Street Journal. He declined to go into further detail.
If the petitioners gather 100 signatures from 1,366 seat owners, they could hold a special meeting to talk about replacing Grasso.
It is unclear what action could come out of the special meeting. The NYSE constitution says such a meeting can be called, but does not elaborate on the proceedings.
In a letter earlier this month, Rutledge asked the SEC to "closely examine and explore" the exchange's announcement that it paid Grasso almost $140 million in accrued savings, benefits and incentives, and extended his contract for an additional two years, until 2007.
Rutledge, an NYSE member since 1973, marked the letter "confidential" and asked the SEC for discretion.
"If and when certain individuals within NYSE management become aware of a disclosure of 'internal criticism,' there are incidents of possible vindictive retribution against the suspected 'informants'," the letter said.
But in a memo informing his colleagues of the letter, Rutledge said the "current crisis that the exchange is faced with, far outweighs the risk of hastening the demise to my otherwise mediocre career."
The NYSE declined to comment on Rutledge's comments or the floor traders' petition.
Since the NYSE divulged Grasso's compensation on Aug. 27, it has faced a public outcry and intense media scrutiny, with many saying the chairman receives far too much money for someone serving as a regulator.
Grasso has staunchly defended his compensation and pay package, and said on Wednesday that he would not resign his post. |
