i find it baffling as well..
<edit>
"inappropriate for a regulator"...i suppose that point could be made....but one wonders just how the board came to the pay package to begin with
story.news.yahoo.com
NYSE Chairman Dick Grasso Resigns
10 minutes ago Add Business - AP to My Yahoo!
By AMY BALDWIN, AP Business Writer
NEW YORK - New York Stock Exchange (news - web sites) chairman Dick Grasso resigned Wednesday amid rising fury over his $139.5 million pay package, his 36-year career ruined by cries that he made too much money running the world's richest financial market.
Grasso opened an emergency meeting of the NYSE board and said he was prepared to offer his resignation if the board asked him to, according to a source close to the board, who spoke on condition of anonymity.
The board requested Grasso step down, and then accepted his resignation, the source said. The board was to reconvene later in the evening to discuss a replacement.
The meeting, which included chief executives from Wall Street's largest investment banks, began shortly after the market closed.
The resignation came a day after, four major pension fund leaders called for Grasso to step down, condemning his payout as inappropriate for a regulator.
Resentment over the multimillion dollar pay package was coming to a head on the exchange floor, as well, as active seatholders planned to gather after the market closed Thursday to discuss the issue with three directors who are also NYSE members.
The NYSE revealed its top executive's pay for the first time last month as it announced Grasso's contract had been extended through 2007. News that he would receive a lump sum payment of $139.5 million in accrued benefits and tax-deferred savings sent jaws dropping across Wall Street. The funds accumulated over his 36-year career with the exchange, mostly during his eight years as chairman.
Grasso has insisted he did nothing to influence his pay. At a Sept, 9 news conference, when he announced he would forgo another $48 million promised to him under his contract, he said each year when informed of his compensation he responded by saying, "I'm blessed. Thank you."
Critics, from investor advocates to politicians and traders, say the lavish pay undermines the credibility of the exchange, a not-for-profit institution that is owned by its members and also serves as a regulatory watchdog.
Michael LaBranche, the head of LaBranche & Co., one of the NYSE's largest stock-trading specialist firms, had come out earlier in the day in favor of a change.
"We are calling for Grasso's immediate resignation in the interest of the New York Stock Exchange. We think Dick Grasso has to leave now in order for the exchange to move forward and restore investor confidence in the marketplace," he said.
Traders have reportedly circulated one or more petitions calling for a special meeting to discuss changes at the top of the NYSE. Many have also been critical of the board for approving the hefty pay package |
