Former New York Stock Exchange chairman Richard Grasso has flatly refused to return any part of the $188-million (U.S.) compensation package that led to his ouster, according to published reports yesterday.
In fact, Mr. Grasso argues that he is still owed $50-million by his former employer, the reports said.
According to The Washington Post and The Financial Times, Mr. Grasso has dug in his heels despite the public outcry over his compensation and has retained veteran litigator Brendan Sullivan to represent his interests.
In a sharply worded letter dated Feb. 26, Mr. Sullivan told interim NYSE chairman John Reed that Mr. Grasso "has no intention of returning any portion of his compensation to the exchange," according to the reports.
Mr. Sullivan said Mr. Grasso -- who departed the NYSE in September -- would be seeking $50-million still owed him by the exchange.
Earlier this week, newly installed NYSE chief executive officer John Thain said he would like to see Mr. Grasso return "a very substantial" part of his pay, which he called "excessive."
But Mr. Sullivan said Mr. Grasso's package had been determined by "more than 40 of the most sophisticated executives in America," and went on to name the companies of the NYSE compensation committee members who approved Mr. Grasso's pay package.
Mr. Sullivan also raised the possibility that Mr. Grasso would sue the exchange for what he considered disparaging remarks. "The exchange signed a contract that prohibits the public disparagement of Mr. Grasso," Mr. Sullivan said in the letter. "We suggest that it is time for you and Mr. Thain to read the contract, as we intend to hold you to it."
Mr. Sullivan also challenged the NYSE to bring suit against Mr. Grasso "rather than conducting a campaign through the press and intermediaries in an attempt to pressure" the former chairman.