Reed Will Stay on as NYSE Chair for Another Year

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John S. Reed, interim chairman of the New York Stock Exchange, plans to continue in that role for another year.

According to the Wall Street Journal, Reed told the NYSE board of executives Thursday of his decision, which may indicate the difficulty of finding a permanent NYSE chairman.

The low-key Reed took the interim post in September, after former NYSE chairman Richard Grasso left the Big Board amid fierce criticism of his $139.5 million retirement-pay package.

Reed has demanded that Grasso return $120 million to the NYSE, which shows the Exchange is making its own effort to recover some of the funds. Meanwhile, state and federal regulators continue to investigate whether state nonprofit laws, under which the Big Board is incorporated, or federal securities laws were broken.

Grasso has let the Big Board know that he has no intention of returning any of the $139.5 million, and he is seeking an additional $57.7 million he thinks he is owed.

Reed, formerly a co-chairman of Citigroup Inc., has experienced a tumultuous seven months on the job. His focus has been on overhauling the exchange's governance and finding a permanent NYSE chairman and CEO.


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