NY Attorney General Spitzer Sues Grasso and NYSE

New York Attorney General Eliot Spitzer yesterday sued former New York Stock Exchange Chief Executive Richard Grasso to try to recoup nearly $100 million of the $188.5 million the exchange paid him before he resigned last September.

At a Manhattan press conference, Spitzer called Grasso’s compensation process "rigged," and "wholly inappropriate and illegal." He said that Grasso, who was also the NYSE chairman, at turns misled and intimidated some of the exchange's board members, Reuters reported.

Kenneth Langone, former chairman of the NYSE compensation committee, who participated in approving the pay package, and the exchange itself were named as defendants.

Frank Ashen, a former NYSE executive vice president who was seen as a key architect of Grasso's compensation package, reached a settlement with Spitzer's office, under which he will return $1.3 million to the NYSE, Spitzer said and Reuters reported. The suit seeks to rescind the pay package and to settle on an appropriate compensation level for Grasso.

The suit caps a four-month investigation by Spitzer who said Grasso’s case epitomizes all that is wrong with corporate America.

"When this case comes to trial, we will seek well over $100 million back from Mr. Grasso," Spitzer said. "The amount that was paid was simply not reasonable."

Grasso has already received $140 million from the exchange. Spitzer also said Grasso had received a previously undisclosed $12 million, Reuters reported.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.