Report brings to light Grasso’s pay

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Tuesday April 05, 11:42

Report brings to light Grasso’s pay

(by Helen Snow)

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For nearly two years after former New York Stock Exchange chief Dick Grasso was given the sack because of a shady situation about his $139.5 million compensation, a key question has been why directors at the NYSE chose to pay him so much.

On Monday, materials filed by Grasso’s defense team suggested some rational explanation.

The excerpts of the company’s directors showed they appreciated Grasso as an "A-plus" chief executive doing a "fabulous job". The fear that he would move to an organization with a better offer of stock-options package urged them to pay him so much in cash.

Portions of the interviews with directors published this year were included in a report produced for the exchange by former federal prosecutor Dan K. Webb. Grasso’s defense team had argued that the document, called "Webb Report," was unfair and created an unfavorable image for Grasso.
The 142-page Webb report found that Grasso received about $144.5 million to $156.7 million in "excessive compensation and benefits."

New York Supreme Court Judge Charles E. Ramos, who is overseeing New York Attorney General Eliot L. Spitzer’s lawsuit against Grasso, ruled Monday that the interviews could not remain unrevealed.

In his lawsuit, Spitzer argues that Grasso’s pay was not prorated under New York law for the head of a not-for-profit organization, claiming that directors were kept blind about the full sum of Grasso’s compensation. The Spitzer’s demand is that Grasso should repay the exchange at least $100 million.

Grasso filed a counterclaim contending that the exchange should pay him about $50 million more. The hearing of the case is expected to take place not earlier than late this year.

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