Imagine the surprise of New York Stock Exchange board members yesterday. Conferencing in order to get their thoughts straight about Chairman Dick Grasso's controversial $140 million compensation package, some learned for the first time that he's entitled to an additional $48 million in deferred pay. Woops.
As calls for reform reverberated down Wall Street in the wake of the Enron debacle and other scandals, many looked for the NYSE to institute tougher reforms for its member firms. But Grasso and the board itself have had problems of their own. Former Vivendi Universal
Grasso has been a lightning rod for criticism, and not just for his salary. He's a member of Home Depot's
Donaldson's probe into Grasso's salary is the reason the board was meeting yesterday. It turns out Grasso has decided to forgo the extra $48 million in pay, but is ignoring calls for his resignation. Why would he give up $48 million? Probably because accepting it would almost surely lead to his ouster.
Stay tuned.