Addressing the Richard Grasso case, one should take into consideration that the case is not only about whether or not it is ethical to receive a large compensation, but it is also about an individual who invested many years of his life in the company and put beyond money at risk everyday through days that demanded his decision making and risk taking. This paper strives to be of an objective point of view regarding this case, addressing all angles of the case whether in Grasso’s favor or the labor’s. I however stand with Grasso’s side of argument.
Grasso, the chief executive of the NYSE after spending twenty-seven years through the ranks, was asked to resign in 2003 after the high profile compensation controversy. Regardless of the success Grasso brought up to NYSE; pushing to improve and expand NYSE and successfully restarting operations of NYSE after the 9/11 terrorist attacks, receiving a compensation package worth reportedly between $140 to $187.5 million by board of directors of the NYSE, and the members of the compensation committee themselves were of which Grasso had regulatory authority as head of the NYSE, caused an immediate controversy. The case against Grasso argues that the board of directors was misled, the compensation formula was…show more content… However having the CEO of the firm being a member of the compensation committee too and being able to administrate the compensation of his/her own, subjects many lives and companies to being corrupted and corrupting. In Grasso’s case, Grasso is such of CEO as above is described to be. He was too a member of the compensation committee which stands to be one of the reasons to how the controversy was