Former stock exchange chairman ordered to repay millions in compensation
The Wall Street Journal reports that a New York State justice ordered former chairman of the New York Stock exchange Dick Grasso to repay millions of dollars in excessive compensation. This is a recurring theme in corporate America. A CEO appoints his friends to his board, as well as other CEO's with business ties to the company, then a friendly compensation committee is put together and sure enough they decide to pay the CEO millions of dollars.
Mr. Grasso's pay package of $187.5 million was considered to be a little on the high side for New York Attorney General Elliot Spitzer who pointed out that, after all, the New York Stock Exchange was a not for profit corporation. In fact, when asked some questions by the SEC, Mr. Grasso invoked the fifth amendment and refused to answer.
In ruling against Mr. Grasso Justice Charles E. Ramos repeatedly chastised Mr. Grasso, writing that, among other things, he had failed to adequately disclose the size of his $187.5 million pay package to the board. The justice also criticized the board for failing to do its homework.
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