The New York Stock Exchange Essay Example | Topics and Well Written Essays - 500 words

The New York Stock Exchange - Essay Example The New York Stock Exchange (NYSE) is a non profit organization whose ownership is composed of 1300 members or â€Å"seats†. Richard Grasso was the Chairman of NYSE for several years during the first decade of the 21st century. He did a good job of as chairman of the NYSE increasing the productivity of the stock exchange. Some of his major accomplishments included tripling seat prices, investing $2 billion in information technology upgrades, and achieved record volume of business in a bad economy and tough competitive environment. The problem with his tenured as chairman is that he took advantage of his position to benefit economically beyond what he deserved. He also colluded with the board of directors creating agency issues that help him inflate his total compensation. For instance the Board of Directors was handpicked by Mr. Grasso. They were his puppets and would approve without debating the outrageous bonuses Richard Grasso paid himself. In 2003 when they scandal was rev ealed Richard Grasso received $2.3 million dollars in salary. The previous four years his total compensation ranged between $9.9 million and $24.2 million. Grasso was a greedy executive that acted in an unethical manner. Upon his resignation due to public pressures Grasso received a lump sum payout which included liquidation of pension plan of $140 million. The NYSE is most powerful and influential stock exchange in the world.