Case | HBS Case Collection | February 2005 (Revised April 2006)

Richard Grasso and the NYSE, Inc. (A)

by William W. George and Andrew N. McLean


In 2003, the New York Stock Exchange faces heated controversy over the pay of Chairman Richard Grasso. Traces Grasso's development and his success serving stakeholders while transforming operations at the world's largest exchange. Describes how Grasso's compensation and the NYSE's governance structure come under attack. Raises questions in the mind of the deeply split board of directors about stakeholder influence, corporate governance practices, performance and compensation, and retention of a high-performing-turned-controversial chief executive.

Keywords: Financial Markets; Corporate Governance; Executive Compensation; Leadership; Performance; Financial Services Industry; New York (state, US);


George, William W., and Andrew N. McLean. "Richard Grasso and the NYSE, Inc. (A)." Harvard Business School Case 405-051, February 2005. (Revised April 2006.)