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Published by: Harvard Business Publishing
Originally published in: 2011
Version: 14 October 2011
Length: 10 pages
Data source: Published sources

Abstract

On September 2003, Richard Grasso stepped down as chairman and CEO of the New York Stock Exchange, following weeks of intense public criticism over the size of his USD190 million compensation package. As chairman of the committee that oversaw Grasso's payout, Ken Langone believed firmly that the payment was fair and reasonable. However, NYSE members, government regulators, and the media alike blamed the board for its oversight and viewed Langone as the mastermind behind Grasso's huge payout. Calls to oust Langone as director from all his board positions came within days of Grasso's resignation. This case follows immediate backlash against Langone over his role at the NYSE as well as the connection this scandal had on his eventual departure from General Electric's board of directors. Should Langone have resigned from GE's board?
Locations:
Other setting(s):
2003-2008

About

Abstract

On September 2003, Richard Grasso stepped down as chairman and CEO of the New York Stock Exchange, following weeks of intense public criticism over the size of his USD190 million compensation package. As chairman of the committee that oversaw Grasso's payout, Ken Langone believed firmly that the payment was fair and reasonable. However, NYSE members, government regulators, and the media alike blamed the board for its oversight and viewed Langone as the mastermind behind Grasso's huge payout. Calls to oust Langone as director from all his board positions came within days of Grasso's resignation. This case follows immediate backlash against Langone over his role at the NYSE as well as the connection this scandal had on his eventual departure from General Electric's board of directors. Should Langone have resigned from GE's board?

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Locations:
Other setting(s):
2003-2008

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