WSJ/CNBC: Dick Grasso Offers Resignation, NYSE Accepts

The Wall Street Journal | September 17, 2003

[Timesink]

More TK...

[Wphile]

Grasso put in to nomination leon pinnetta, carl mccall, and madeline halfbright for the board of directors. That should give you an idea.

Good Lord...that is frightening indeed!

[Moonman62]

This episode points to a serious problem with U.S. businesses. Officers of the board take hundreds of millions of dollars in compensation from the company, and then that money isn't available to reinvest in the company. R&D, new equipment, competitive salaries for the rank and file, service to the customer, all of it siphoned off into the pockets of the board members. Some companies that are already weak wind up going bankrupt because of this sort of thing.

Sure it's a problem, but it isn't anywhere near as serious as the problem of the government stealing money from the private sector. We've lost our priorties, so that we may jump on the trendy villain bandwagon.

[goodnesswins]

For years I've thought it would be great to be "annointed" to a major Board.... now, I'm wondering what a battle it might have been to get a point across, especially during the heydays of the late 90's.....there probably were Board members asking questions, but, like me, they'd be looked at as party poopers. Having worked with Compensation, however, I question what his actual JOB was, and how it compared to comparable jobs.....but, then, like you, I wonder about the pay of some of the CEO's whose Board's just keep on upping their salaries while the company is losing money. Just my 2 cents.

[habs4ever]

This is so much like how Enron operated, with absurd conflicts of interest, that an open revolt by assorted NYSE members was inevitable.Where does a regulator get the idea he can take home a pay package, more than the CEO of Goldman Sachs, that comes directly from fees paid by member firms over which that he has jurisdiction and regulatory authority ? This is gross corruption and Carl McCall, good Democrat flunkie moron he is, signed off on it.

The entire compensation committee of the NYSE has to be fired.

[habs4ever]

Both firms finally figured out how much they've been ripped off.This is a giant theft, aided by Carl McCall,idiot stooge.Have you ever heard of a bureaucrat getting such a payday?

[goodnesswins]

"The entire compensation committee of the NYSE has to be fired."

YES! That's what SHOULD happen....it will be interesting to see if this goes any further....

[OldFriend]

Grasso outlived his usefulness. Several Merrill Lynch brokers were indicted in the matter of Enron. This was in reference to some phony accounting they sanctioned in 1999.

It would seem that the fig leaf is coming unglued on Wall St. and heads will roll.

Recall Levitt, the former SEC chairman admitted he never even looked at the Enron filings for years. Years BEFORE President Bush was elected.

[Beck_isright]

"The entire compensation committee of the NYSE has to be fired."

The entire board of directors of the NYSE hast to be fired.

[Batrachian]

I think I could list two dozen problems worse than this Grasso business, but since that's what's under discussion, than that's what I'm going to discuss.

Do I have to add a disclaimer to everything I say to the effect that "I know there are worse problems out there but this is what I'm discussing now."?

[Glenn]

Aw, stop yer grumblin!

It's obvious this man is ordained to be wealthy in his olde age. Why do you begrudge a man his just pay for whatever job he's done to deserve such riches?!?

[habs4ever]

This move is to halt the members open revolt, and they ought to demand McCall gets turfed immediately.Too much of this pay package info was kept from them, but it shows that when officers have it in them to rip off their operation, many will turn a blind eye.

Imagine if Greenspan had tried this???

[TopQuark]

No loss to the investing community. One more crook gone, hundreds more to follow...

If he is a crook, you should contact the DA and make sure he is behinf bars.

In the absence of evidence, this is a false accusation -- a big sin and violation of one of the Commandments. So, what makes you a conservative if you spit so easily on our basic values?

You are not worth a cuff link on Grasso's sleeve -- that's why you judge so easily and so harshly. The smaller the mind the harsher the view.

[TopQuark]

Why didn't he wait to realize his money until he was ready to retire? This might have been specified. Interestingly, it was the board that requested it, and he agreed -- to his demise.

[Beck_isright]

" If he is a crook, you should contact the DA and make sure he is behinf bars."

I won't have to. Mr. Spitzer is already cleaning house at the NYSE and there is a lot more to happen in the year ahead. Sadly he is a demorat so he'll gain alot of political momentum.

" In the absence of evidence, this is a false accusation -- a big sin and violation of one of the Commandments."

Who elected you Pope?

"So, what makes you a conservative if you spit so easily on our basic values?"

What made you the God, Judge and Jury of FR?

" You are not worth a cuff link on Grasso's sleeve -- that's why you judge so easily and so harshly."

More than a cufflink, that's for sure. More than his suit. Quite comfortable actually. But that's for me to know and you to be jealous of.

"The smaller the mind the harsher the view."

You've summed up your point quite eloquently Mr. Peabrain.

[TopQuark]

One more core American institution suffered from the class warfare and leftist attack.

Congratualtions to the cheerleaders of that attack.

[Beck_isright]

Yes, but sadly, the screws are still being applied to the specialists at their expense while the banks are walking away with a smile and larger cut of the pie. This open revolt is just beginning and I'm sure that there will be a move to take the NYSE public and make it accountable to SEC regulations. Until this happens, there will be nothing but bad press originating from the exchange for months to come.

[TopQuark]

Officers of the board take hundreds of millions of dollars in compensation from the company Name one.

[TopQuark]

I almost hate writing this because it sounds like a Democrat anti-capitalist talking point, It most certainly is.

but it really is bad for business, Indeed if you assume that this what happens. It does not.

It wasn't always like this, either, and it's not a good development.

The last point is the crux of the issue. The price of talent has skyrocketed in recent years -- across the board. See here examples.

It is the leftist media that makes us focused only on the pay for the talent in the corporate word and insinuates that they are all crooks.

[Mark Felton]

We used to hear the phrase "golden parachute" quite regularly. I'm not sure if the phrase is still in use, but the practice certainly is.

Then: "Golden Parachute"

Now:"Golden Jumbo Jet"

[Southack]

"Is Grasso a Democrat of Republican?"

You are kidding, right?! I mean, when CalPers pension and Madeline Albright go on a witch hunt against someone, you **know** that it ain't no Democrat!

GRASSO, RICHARD LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	3/4/2002	$1,000	Cleland, Max
GRASSO, RICHARD LOCUST VALLEY,NY 11560	NYS STOCK EXCHANGE/PRESIDENT	4/1/2002	$1,000	Engel, Eliot L
GRASSO, RICHARD LOCUST VALLEY,NY 11560		1/2/2000	($1,000)	Giuliani, Rudolph W
GRASSO, RICHARD LOCUST VALLEY,NY 11560		6/30/2000	($1,000)	Giuliani, Rudolph W
GRASSO, RICHARD NEW YORK,NY 10005	NYSE	3/2/2000	$500	Maloney, Jim
GRASSO, RICHARD LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	3/1/2002	$1,000	Cleland, Max
GRASSO, RICHARD LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE/CHAIRMAN	10/18/2002	$1,000	McCarthy, Carolyn
GRASSO, RICHARD LOCUST VALLEY,NY 11560		11/12/1999	$2,000	Giuliani, Rudolph W
GRASSO, RICHARD LOCUST VALLEY,NY 11560		1/2/2000	$1,000	Giuliani, Rudolph W
GRASSO, RICHARD NEW YORK,NY 10005	NEW YORK STOCK EXCHANGE	3/30/2000	$1,000	Gramm, Phil
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	6/27/2003	$1,000	McCain, John
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	10/31/2002	$1,000	Schumer, Charles E
GRASSO, RICHARD A NEW YORK,NY 10005	NEW YORK STOCK EXCHANGE	6/14/2002	$1,000	Shelby, Richard C
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	3/31/1999	$1,000	McCain, John
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE INC	6/21/1999	$1,000	Markey, Edward J
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NY STOCK EXCHANGE CHAIRMAN	6/15/2000	$1,000	Lazio, Rick A
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	5/2/2003	$1,000	McCain, John
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE/CHAIRMAN	5/28/2002	$1,000	Dingell, John D
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE	9/8/1999	$1,000	Towns, Edolphus
GRASSO, RICHARD A LOCUST VALLEY,NY 11560	NY STOCK EXCHANGE CHAIRMAN	6/15/2000	$1,000	Lazio, Rick A
GRASSO, RICHARD A NEW YORK,NY 10005	NY STOCK EXCHANGE	8/17/2000	$1,000	Fossella, Vito J
GRASSO, RICHARD A MR NEW YORK,NY 10005	NY STOCK EXCHANGE/CHAIRMAN	6/9/2003	$1,000	Fossella, Vito
GRASSO, RICHARD A MR LOCUST VALLEY,NY 11560	NEW YORK STOCK EXCHANGE/CEO	6/11/2001	$2,000	Straight Talk America