NYSE chief gives up 30m in bid to quell pay revolt

NEW York Stock Exchange chairman Richard Grasso has agreed to waive a $48 million (30.2 million) payment in an attempt to head off growing opposition to his leadership.

But the gesture seems to have done little to reassure an exchange membership angered by what many see as fat-cattery. Grasso already enjoys a package worth $140 million.

Many hope it may persuade the Securities and Exchange Commission that the NYSE is incapable of managing its affairs responsibly. The watchdog is already demanding explanations about Grasso's pay package. SEC chairman William Donaldson is said to regard Grasso's remuneration as inappropriate.

The NYSE does not see it that way. Carl McCall, head of the remuneration committee, said it was justified. Grasso also is defiant. He said: "My leadership has been questioned not because of prior achievements, but because of the size of the award. This institution should not be preoccupied with the compensation of its leader." He had no intention of stepping down before his contract expired in 2007. Grasso, 57, has been NYSE chairman since 1995.

Criticism is mounting. James Rutledge, who has owned an NYSE seat for 30 years, wants Grasso's scalp. "My desire is to motivate those of influence to seriously consider the gravity of the issues, summon some intestinal fortitude, get off their respective butts and initiate changes we desperately need to begin to move forward," he wrote in a letter to the SEC.

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