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Resigns from nyse { September 18 2003 } Original Source Link: (May no longer be active)    http://www.guardian.co.uk/business/story/0,3604,1044393,00.html http://www.guardian.co.uk/business/story/0,3604,1044393,00.html Grasso resigns from NYSE $140m costs chairman his job David Teather in New York Thursday September 18, 2003 The Guardian Richard Grasso last night resigned as chairman of the New York Stock Exchange after the calls for him to go over the size of his compensation package reached deafening levels. The board of the exchange convened an emergency conference call last night to discuss Mr Grasso's future. Carl McCall, chairman of the NYSE compensation committee who chaired the meeting, said Mr Grasso offered to resign if the board asked. "The board did so and accepted that resignation," Mr McCall said. In a statement Mr Grasso said: "I believe this course is in the best interest of both the exchange and myself." The embattled exchange chief had scheduled a meeting with the board next week to gauge levels of support among his fellow directors. But it became apparent as the day progressed that he was being hopelessly optimistic and that the growing crisis needed an immediate resolution. The exchange has been the subject of a torrent of criticism since it emerged that Mr Grasso had collected a lump sum of almost $140m (£87m) from the NYSE. Pressure on him intensified as some of the most powerful public pension funds in California, New York and North Carolina called for him to step down. They control combined assets of more than $400bn and are some of the NYSE's biggest customers. Politicians in Washington at a hearing of the house financial services committee had also urged Mr Grasso to step aside. Senator Joseph Lieberman, a Connecticut Democrat and a candidate for the presidential nomination, said earlier: "Instead of setting an example of ethical leadership... Mr Grasso's behaviour has shaken the faith of the investors and the foundation of the stock exchange. For the sake of confidence in the market, it is time for Mr Grasso to resign." Mr Grasso had been at the exchange for 36 years and had held the top job since 1995. Until the recent controversy over his pay, he had been a popular figure at the exchange and was widely respected for his leadership, particularly in the wake of September 11. In an effort to quell the controversy, Mr Grasso gave up an additional $48m he had been awarded by the board. The $140m windfall was made up of accrued retirement benefits along with other deferred income and incentives. Until the end he was insisting he had no intention of stepping down. It was reported last night that he would be replaced on an interim basis by lawyer and NYSE board member Larry Sonsini. The NYSE is still preparing a review of its corporate governance. It could include the recommendation that the chairman is barred from the process of choosing new directors and that the jobs of chairman and chief executive, both previously held by Mr Grasso, be separated. Michael LaBranche, the chairman of the largest specialist operation on the floor, LaBranche & Co, said yesterday before the emergency meeting: "We're calling for Grasso's immediate resignation... we believe he needs to leave in order for the exchange to move forward and restore investor confidence in the marketplace."

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