A New Chapter For The NYSE
Follow events leading to the resignation of Dick Grasso, the eight-year chairman of the New York Stock Exchange.
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The NYSE board of directors names Grasso as the new chairman and CEO. Grasso, who started out as a floor clerk in 1968, is the first person from the stock exchange's professional staff to be promoted to that position.
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NYSE announces an extension of Grasso's contract to 2007 and reveals the deal includes nearly $139.5 million in previously accumulated savings and benefits. It is the first time the board disclosed the top executive's compensation. The board offers few specifics.
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Securities and Exchange Commission chairman William Donaldson, a former chairman of the NYSE, sends a critical letter asking for details of the pay package.
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NYSE releases documents showing how Grasso's compensation ballooned from $3 million in 1996 to $25.5 million in 2001. The exchange says Grasso was entitled to $48 million more, which he says he will forgo. Grasso also says he had no input on his compensation.
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NYSE documents show that Grasso had taken a firm hand in how his new contract would be structured, proposing contract changes to extend his employment, cap growth of his pension and transfer money to his savings plan. Proposals led directly to the new contract.
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Three trading professionals who serve on the NYSE's board of directors schedule a meeting for active seatholders to discuss the situation. Traders reportedly circulate a petition calling for Grasso to be replaced.
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Former NYSE chairman James Needham says all those associated with the compensation decision should step down, including Grasso.
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State pension officials in California, New York and North Carolina call for Grasso's resignation.
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Some of Wall Street's biggest firms join the call for Grasso to resign. Grasso calls an emergency meeting of directors and resigns at the board's request.
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Former Citigroup CEO John S. Reed is named as interim leader of the stock exchange. The NYSE will pay the corporate veteran, who has spent three years teaching and writing in retirement, $1 for his service.
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Credits:
CBS News, Associated Press, NYSE.com
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