New York, Aug 31: The New York Stock Exchange on Wednesday said it paid out almost $140m to chairman and CEO Richard Grasso in accrued savings, benefits and incentives, and extended his contract by two years, until ‘07. The announcement is the first time the exchange has publicly disclosed the compensation of its top boss and public face, and has raised questions about how much the exchange pays its top officials.
The Securities and Exchange Commission, which oversees the exchange, signalled its interest. “We have seen the announcement and are looking into the details,” an agency spokesman said.
Some NYSE members and expert observers were critical of Mr Grasso’s compensation package. “It makes my stomach turn, and I can’t believe the board is allowing the (exchange’s) treasury to be looted like this,” said an executive whose firm pays millions of dollars in fees to the NYSE and spoke on condition of anonymity. Grasso, who has worked for the NYSE for 36 years and has been chairman since 1995, was travelling and not available to comment. The new agreement pays him the same base salary of $1.4m and an annual bonus of at least $1m.
Bureau Report