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Last updated at: (Beijing Time) Thursday, September 18, 2003

Head of New York Stock Exchange resigns

After three weeks of mounting criticism of his $140 million compensation package, Richard A. Grasso, the chairman and chief executive of the New York Stock Exchange, resigned Wednesday evening.


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After three weeks of mounting criticism of his $140 million compensation package, Richard A. Grasso, the chairman and chief executive of the New York Stock Exchange, resigned Wednesday evening.

His resignation came after an emergency meeting of the stock exchange's directors late Wednesday afternoon. Members of the exchange's board called on Mr. Grasso to resign, even though he asserted earlier Wednesday that he would serve out his term as head of the stock exchange.

Mr. Grasso's resignation is a stunning reversal for a man who was once widely acclaimed for his leadership in getting the stock exchange up and running six days after the Sept. 11, 2001, terrorist attacks brought business on Wall Street to a halt.

But the size of Mr. Grasso's compensation package upset many financial industry executives, floor traders and investors, who said it was excessive for a person who was the head of a quasi-public regulatory institution.

H. Carl McCall, the chairman of the exchange's compensation committee, said in a statement Wednesday evening that the board asked for Mr. Grasso's resignation. ``Dick offered to submit his resignation if the board requested, and the board did so and accepted that resignation,'' said Mr. McCall, who was chairman of Wednesday's emergency board meeting.

Mr. Grasso said in the exchange's statement that he submitted his resignation ``with the deepest reluctance.'' He said his resignation was ``in the best interests of both the exchange and myself.''

The stock exchange's board is planning to meet again later tonight to appoint a replacement for Mr. Grasso. There were reports this evening that the board was considering naming Lawrence W. Sonsini, an exchange director, as interim chairman and chief executive. Mr. Sonsini is chief executive of the law firm of Wilson Sonsini Goodrich & Rosati.

Source: Agencies


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