September 18, 2003

I'm Confused

Richard Grasso has resigned from the NYSE after accepting a $140M in deferred income and bonuses. Now, like most everyone else, I doubt that the size of this bonus can objectively be justified, but I do not challenge the authority of the NYSE to give it to Mr. Grasso if they choose to do so.

But what I'm confused about is why Mr. Grasso has effectively been forced out for acting rationally in accepting this money, whereas the true malfeasance, if that's what it is, was on the part of the Board of the NYSE who offered these renumerations to Mr. Grasso. Last time I checked, they were all still there.

Posted by Charles Austin at September 18, 2003 03:49 PM