Human Capital & Careers

NYSE Directors Probed on Grasso’s Pay

The Securities and Exchange Commission is investigating how the exchange's board justified the former CEO's $139.5 million compensation package las...
Stephen TaubMarch 9, 2004

The Securities and Exchange Commission has issued subpoenas to every New York Stock Exchange director who served during Richard Grasso’s eight years as chairman and chief executive officer, according to The Washington Post.

The SEC is investigating how the directors wound up approving three contracts that enabled Grasso to earn $139.5 million last year. Last September, after news of his compensation package was greeted with widespread criticism, Grasso resigned under pressure.

Among those reportedly receiving subpoenas are the chief executives three of Wall Street’s largest investment banks: Henry Paulson of Goldman Sachs, William Harrison of J.P. Morgan Chase, and James Cayne of Bear Stearns.

In the subpoenas, the SEC asked each director what information they received before voting on Grasso’s contracts, what they thought the contracts included, how Grasso’s pay was determined, and how the amounts were justified, according to the Post. Several of the former directors already have returned their questionnaires.