View source for Richard Grasso

{{Short description|Former chairman and chief executive of the New York Stock Exchange}}
{{redirect|Dick Grasso|the Argentine researcher|Dick Edgar Ibarra Grasso}}
{{Infobox person
| name = Richard Grasso
| other_names = Dick Grasso
| image = Richard grasso.jpg
| image_caption = Richard “Dick” Grasso in 2005
| birth_date = {{birth date and age|1946|7|26}}
| birth_place = [[Jackson Heights, Queens|Jackson Heights]], [[New York (state)|New York]], U.S.
| relatives = 
| title= {{unbulleted list|[[Chief Executive Officer|CEO]] – [[New York Stock Exchange]] (1995-2003)|Founder – [https://gladiatorholdingsinc.com/ Gladiator Holdings Inc.]}}
| occupation = {{flatlist|
*Business executive
*investor
*trader
*entrepreneur 
}}
| boards = {{unbulletedlist|[https://www.niaf.org/ National Italian American Foundation]|[https://centurionfoundation.org/ The Centurian Foundation]|[http://www.renewnyc.com/ Lower Manhattan Development Corp.]
|[[New York City Police Foundation]]|New York City Public Private Initiatives Inc.|[[Yale School of Management]] ''(advisory)''|}}<ref>{{Cite web |title=Richard Grasso Biography {{!}} Booking Info for Speaking Engagements |url=https://www.allamericanspeakers.com/celebritytalentbios/Richard+Grasso/398552 |access-date=2023-05-24 |website=www.allamericanspeakers.com}}</ref>
| years_active = 1968-2003
| known_for = Former chairman and CEO of the [[New York Stock Exchange|NYSE]] (1995&ndash;2003)
}}

'''Richard A. "Dick" Grasso''' (born July 26, 1946)<ref name=who>{{cite book |title=Who's Who In Finance and Business - 2004-2005 |year=2004 |edition=34 }}</ref> is a business executive who was the chairman and chief executive of the [[New York Stock Exchange]] from 1995 to 2003. He started in 1968, when he was hired by the Exchange as a floor clerk.

He later became embroiled in controversies and lawsuits about his allegedly excessive pay package and $188.5 million [[golden parachute]]. The New York Attorney General filed a lawsuit which challenged the compensation as excessive for the NYSE, which at the time was a nonprofit. However, on July 1, 2008, the [[New York State Court of Appeals]] dismissed all claims against Grasso because the NYSE had changed its status from a nonprofit to a for-profit organization, which meant that the attorney general had lost standing to sue Grasso.<ref>{{Cite book|url=https://press.princeton.edu/titles/9369.html|title=Running the World's Markets|last=Lee|first=Ruben|date=17 January 2011 |pages=196–197|publisher=Princeton University Press |isbn=9780691133539 |language=en|access-date=2019-05-15}}</ref>

==Early life and education==
Grasso was raised by his mother and two aunts in [[Jackson Heights, Queens|Jackson Heights]] in New York City. His father left the family when Richard was an infant.<ref>{{cite news| publisher=[[USA Today]]|title=NYSE faces Thursday without Richard Grasso| author=Thor Valdmanis| date=September 18, 2003 |url=https://www.usatoday.com/money/markets/us/2003-09-17-grasso-meet_x.htm| access-date=2006-06-16}}</ref> He graduated from [[Newtown High School (New York City)|Newtown High School]] in [[Queens]] and attended [[Pace University]] for two years before enlisting in the Army.

==Career==
{{BLP sources section|date=June 2023}}

===New York Stock Exchange===
Two weeks after leaving the Army in 1968, Grasso became a clerk at the [[New York Stock Exchange]]. Grasso moved up in the ranks, becoming president of the exchange and then CEO in the early 1990s. As CEO, he was credited with cementing the NYSE's position as the preeminent U.S. stock market. Grasso also was an advisory board member for [[Yale School of Management]].

====FARC visit====
On June 26, 1999, [[Reuters]] reported that Grasso met with [[Colombia]]n rebels, the [[Revolutionary Armed Forces of Colombia|FARC]]. FARC is considered a [[terrorist organization]] by the [[U.S. State Department]] (on its [[U.S. State Department list of Foreign Terrorist Organizations|list of Foreign Terrorist Organizations]] since 1997) and is allegedly responsible for kidnappings and [[narcotics]] trafficking in order to bankroll their revolutionary activities (see: [[narcoterrorism]]).<ref>{{cite news|url=http://edition.cnn.com/2001/WORLD/americas/09/10/colombia.terrorism/index.html|publisher=[[CNN]]|last=Koppel|first=Andrea|date=2001-09-10|access-date=2012-01-02|title=U.S. to classify Colombian group as 'terrorist'|quote=FARC and ELN were both designated as Foreign Terrorist Organizations by the secretary of state in October 1997.}}</ref>

The article quoted Grasso as saying, "I invite members of the FARC to visit the New York Stock Exchange so that they can get to know the market personally". Some found the meeting inexplicable, considering the FARC supports [[anti-capitalism|anti-capitalist]] ideals and has no officially recognized financial clout. Grasso told reporters that he was bringing "a message of cooperation from U.S. financial services".<ref>{{cite news|title=NYSE Chief Meets Top Colombia Rebel Leader| publisher=[[Reuters]]| date=1999-06-26 | access-date=2006-02-27| url=http://www.colombiasupport.net/archive/199906/nysefarc.html}}</ref>

====NYSE compensation controversy====
On August 27, 2003, it was revealed that Grasso had been given a [[deferred compensation]] pay package worth almost $140 million. This caused immediate controversy, as the hand-picked compensation committee consisted mainly of representatives from NYSE-listed companies over which Grasso had regulatory authority as its CEO.<ref>{{cite book |last1=Webber |first1=David H. |author-link=David H. Webber |title=The Rise of the Working-Class Shareholder: Labor's Last Best Weapon |date=April 2018 |publisher=Harvard University Press |isbn=978-0-674-91946-4 |pages=11–12 |url=https://www.degruyter.com/viewbooktoc/product/511375 |access-date=15 November 2019 |url-access=subscription}}</ref>

Following criticism of the deal from [[U.S. Securities and Exchange Commission]] chairman [[William H. Donaldson]], who preceded Grasso as Chairman of the NYSE, and several pension fund heads (who control some of the largest pools of [[ownership equity|equity]] investment capital in the United States), the NYSE board asked Grasso to leave in a 13–7 vote. He stepped down on September 17, 2003, and several senior officials followed in the same month.<ref name="nyse-quit">{{cite web|title=International chief Georges Ugeux resigns from NYSE|url=http://www.marketwatch.com/story/international-chief-georges-ugeux-resigns-from-nyse|work=marketwatch.com|date=September 2003}}</ref> Law firm [[Winston & Strawn]] carried out an investigation, on behalf of the NYSE, and a comprehensive report analyzing Grasso's alleged excessive [[compensation and benefits]], and the governance failures behind it, was completed in December.<ref>{{cite web|title=Report to the NYSE on investigation relating to the compensation of Richard A. Grasso|publisher=Winston & Strawn LLP|date=15 December 2003|url=https://docs.google.com/viewer?a=v&q=cache:2ZvtX-JvuZkJ:www.concernedshareholders.com/CCS_NYSE_WebbReportExc.pdf+&hl=en&pid=bl&srcid=ADGEEShqCCEBzd_WrrZS_X_Xo0-aHG2cv6s639RB1xtkKcufTmk_Xez9mXew-yw96p-Dgc4TFYDE-KF-H2b9hbwrfrgITXvodgAbomViBU-ClfB8zt5tVLQIJxJaopggwglE8XPqSD-b&sig=AHIEtbSMohVoF7t9wsRBOnZzpdMwMLiBrg}}</ref>

====Lawsuit====
On May 24, 2004, Grasso was sued by [[New York State Attorney General]] [[Eliot Spitzer]] demanding repayment of the majority of the $140 million pay package.  Prior to being dismissed Grasso had been in line to receive an additional $48 million over the $139.5 million he had already received; he was not paid the additional funds.{{citation needed|date=November 2012}}

On May 26, 2004, Grasso responded with a counter-suit against the Exchange and its chairman [[John S. Reed|John Reed]]. The counterclaim was twofold; It sought restitution of unpaid portions of his retirement package and further accused certain individuals at the Exchange of "besmirching his name". Grasso went on to place a 1,500-word [[op-ed]] article in the ''[[Wall Street Journal]]'' detailing this counter-suit as well as his grievances against Spitzer. The lawsuit against Grasso continued to move toward trial in 2006 with neither side showing any interest in settling.{{citation needed|date=November 2012}}

On October 19, 2006, it was reported that the [[New York State Supreme Court]] issued a summary decision ordering Grasso to repay a significant amount of excess compensation in an article entitled "Ex-NYSE chief ordered to return part of $188M".<ref>{{cite news|url=https://www.npr.org/templates/story/story.php?storyId=6352037|title=Grasso Ordered to Return NYSE Pay|publisher=NPR}}</ref> Although Grasso will appeal, the same article reports that Spitzer's office has disclosed the amount of restitution to be in the tens of millions of dollars. In his ruling, Judge Ramos wrote that Grasso's failure to disclose the true extent of his total compensation prevented the compensation committee from exercising its fiduciary duties. The above CNN article also reported that Grasso's counterclaim of defamation was dismissed.

On July 1, 2008, the [[New York State Court of Appeals]] dismissed all claims against Grasso. The majority opinion stated that since the NYSE was now a [[subsidiary]] of a for-profit [[multinational corporation]], the State of New York had no oversight over the affairs of the company in this matter and that prosecution was "not in the [[public interest]]". Current attorney general [[Andrew Cuomo]] stated that he had no intention to appeal this decision any further and that the case was effectively over. The court ruled that Grasso was entitled to the entirety of his compensation. The court also dismissed Grasso's actions against the NYSE and other parties as related to this matter.

During an SEC investigation Grasso invoked his [[Fifth Amendment to the United States Constitution|Fifth Amendment]] right against [[self-incrimination]] in refusing to answer questions regarding his conduct during an NYSE investigation into possibly improper activities by Exchange specialist firms.<ref>{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2006/03/16/AR2006031601971.html|title=Grasso Took the Fifth In SEC Trading Probe|newspaper=Washington Post|date=March 17, 2006}}</ref> The specialist firms paid $242 million in settlements with the SEC, and the NYSE itself was censured for failing to properly supervise the specialist firms.<ref>{{cite web|url=https://www.sec.gov/news/press/2005-53.htm|title=SEC charges the New York Stock Exchange with failing to police specialists|year=2005|publisher=SEC}}</ref>

The suit against Grasso came under criticism, with journalist [[Charles Gasparino]] lambasting it in the epilogue to his book, ''Blood on the Street''. He is the subject of a book by Gasparino, ''King of the Club''.

==References==
<references/>
*{{cite news
  | author=Weiss, Gary
  | title=The $140,000,000 Man
  | date=September 15, 2003
  | publisher=[[BusinessWeek]]
  | url=http://www.businessweek.com/magazine/content/03_37/b3849001_mz001.htm
| archive-url=https://web.archive.org/web/20030909090719/http://www.businessweek.com/magazine/content/03_37/b3849001_mz001.htm
| url-status=dead
| archive-date=September 9, 2003
| author-link=Gary Weiss
 }}
*{{cite news
  | author=White, Ben
  | url=https://www.washingtonpost.com/ac2/wp-dyn/A26875-2003Sep17
  | title=NYSE Ousts Grasso as Chairman: Size of Pay Package Drew Wide Criticism
  | newspaper=[[The Washington Post]]
  | page=A01
  | date=September 18, 2003
}}{{dead link|date=January 2025|bot=medic}}{{cbignore|bot=medic}}
*{{cite book
 | last = Surowiecki
 | first = James
 | author-link = James Surowiecki
 | title = The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations
 | year = 2004
 | publisher = [[Doubleday (publisher)|Doubleday]]
 | isbn = 0-385-50386-5
 | url-access = registration
 | url = https://archive.org/details/wisdomofcrowdswh00suro
 }}
*{{cite book
 | last = Albrecht
 | first = Karl
 | author-link = Karl Albrecht (author)
 | title = Social Intelligence: The New Science of Success, Economies, Societies and Nations
 | year = 2005
 | publisher = [[Pfeiffer Publishing]]
 | isbn = 0-7879-7938-4
}}
* [[Charles Gasparino|Gasparino, Charles]] (2007). ''King of the Club: Richard Grasso and the Survival of the New York Stock Exchange''. HarperCollins.

==External links==
*[http://www.newsmeat.com/ceo_political_donations/Richard_Grasso.php Richard Grasso's federal campaign contributions]
*{{IMDb name|id=1795711}}
*{{C-SPAN}}
{{Dot-com Bubble}}
{{Authority control}}

{{DEFAULTSORT:Grasso, Richard}}
[[Category:1946 births]]
[[Category:Living people]]
[[Category:New York Stock Exchange people]]
[[Category:American businesspeople]]
[[Category:American people of Italian descent]]
[[Category:Businesspeople from Queens, New York]]
[[Category:Military personnel from New York City]]
[[Category:Pace University alumni]]
[[Category:United States Army soldiers]]
[[Category:Presidents of the New York Stock Exchange]]