GRASSO’S GOES TO 13….New York Attorney General Eliot Spitzer has decided to sue Richard Grasso, the former CEO of the New York Stock Exchange, for using various forms of chicanery to overpay himself. Spitzer listed several main bullet points to support his contention, but this is my favorite:
On a 1-to-10 performance scale used to determine compensation, Grasso at one point assigned himself a 13, Spitzer said.
Quick, someone tell Spinal Tap!
UPDATE: On a more serious note, I should point out that Spitzer’s case is built on the fact that the NYSE is a not-for-profit corporation and therefore is not legally allowed to pay its executives exorbitant sums. His suit also lists some instances of alleged deception and fraud on Grasso’s part.
I can’t judge whether Spitzer’s case holds water legally, but I wanted to point out that there really is a case here. It’s not just a matter of Spitzer casually deciding that he gets to tell public companies how much they are allowed to pay their employees.