SEC wants details of NYSE chairman’s pay package


  • Business
  • Thursday, 04 Sep 2003

NEW YORK: The top US securities regulator is seeking details of the US$140mil in compensation doled out to New York Stock Exchange (NYSE) chairman Richard Grasso, saying it raised many questions about the way the exchange was governed. 

The Securities and Exchange Commission (SEC) chairman William Donaldson, in a terse letter addressed on Tuesday to NYSE board member H. Carl McCall, said the approval of Grasso’s pay package “raises serious questions regarding the effectiveness of the NYSE’s current governance structure”. 

The SEC does not have direct authority to dictate pay scales to the NYSE, but it does have oversight power to inspect the exchange’s governance structures and plans to use it, according to sources close to the commission. 

“In the ordinary course, you wouldn’t expect the SEC to be involved in such a matter,” said Frank Goldstein, a securities lawyer and partner at the law firm of Sidley Austin Brown & Wood. “In today’s environment, you can’t say with any certainty where the SEC will conclude its jurisdiction ends.” 

Donaldson gave the exchange till Sept 9 to respond to the list of questions regarding the terms of Grasso's pay package. – Reuters  

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