| Author |
Message |
Rikky Alessi (Ralessi)
Member
Username: Ralessi
Post Number: 338
Registered: 5-2002
| | Posted on Thursday, September 18, 2003 - 7:15 pm: | |
I think it is getting blown out of proportion and the news coverage is only going to make everything worse. What is the average person reading the newspaper (me today, well drudge) going to think when he sees "...received 140 million dollars..." Although I saw the "this was deferred payment" most people will not, or will not care or even think about it. It also did not break it down saying how many years, interest, etc.
I feel bad for the guy.
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David McGee (Damcgee)
Junior Member
Username: Damcgee
Post Number: 97
Registered: 2-2003
| | Posted on Thursday, September 18, 2003 - 3:55 pm: | |
Exactly, Tom! I've been following this closely, so I'll weigh in.
This irritates the piss out of me!
Ok, the $139.7M figure is the sum of his last 8 years salary/bonus @ 8% interest. I believe I also read in Business Week that $50M of that was his own money that they "borrowed" @ 8%.
What it came down to was about $87M in salary/ other compensation over the course of 8 years. Roughly $11M/year.
This, for a guy who, in his years as Chairman/ CEO has tripled shareholder value (seat prices have gone from ~$.75M to $2M). Additionally, seatholders are leasing their seats for $200k/year. So this guy has tripled the seatholder's equity AND is giving him 10% annual return in addition to that.
If I was a seatholder, I'd be shaking this guy's hand.
What it comes down to is a lot of people that don't truly believe in Capitalism. They don't think you should be able to make "As much money as you can".
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TomD (Tifosi)
Advanced Member
Username: Tifosi
Post Number: 4337
Registered: 9-2001
| | Posted on Thursday, September 18, 2003 - 6:30 am: | |
Not trying to justify the guys money but most of this payout was part of a deferred comp plan recognizing his 36 years at the exchange and the the huge growth and that occurred over the last 10 |
TomD (Tifosi)
Advanced Member
Username: Tifosi
Post Number: 4336
Registered: 9-2001
| | Posted on Thursday, September 18, 2003 - 6:28 am: | |
It is so funny, many of those calling for him to resign have been paid huge amounts as well - Paulson, O'Neal etc etc and by their firms actions have done more to ruin investor confidence than Grasso. While he does have influence over the board, it was the board that approved his pay package, yet that same board now asks him to resign. What a joke, its all one big dog and pony show to try to make avg investors think these guys care. In the end the care only about themselves - talk about the pot calling the kettle black. |
Thomas I (Wax)
Member
Username: Wax
Post Number: 306
Registered: 7-2003
| | Posted on Thursday, September 18, 2003 - 2:31 am: | |
In a different (read: non-Ferrari-specific, etc.) forum last week, there was discussion about Maximum salaries - once I posted this link, the tumult and the shouting from those saying there should be no salary ceiling for CEO's and their ilk - stopped.
http://www.bayarea.com/mld/mercurynews/business/6762421.htm
If the link doesn't load, here's the gist of what was going on:
Criticism of NYSE Chairman Richard Grasso and his $140-million-plus pay package intensified Friday, 9-12, and included new calls from several NYSE seat holders for his resignation.
Bernard Herold, longtime owner of a seat on the exchange and founder of brokerage Bernard Herold & Co., complained in an interview that the NYSE kept raising the fees charged to members and seat holders even as their trading revenues slumped during the recent bear market. Through it all, Herold said, Grasso and his lieutenants collected large salaries and bonuses.
``That's no way to run a business,'' he said. ``There ought to be a shake-up on the exchange.''
``I don't think he should resign, but I think he should acknowledge that he could do the job for, say, $2 or $3 million,'' said George E. Morris of Easton, Md., a retired broker and NYSE seat holder.
Here's a short and sweet summary of what happened yesterday, 9-17 - after the NYSE shut down for the day:
http://www.canoe.ca/CalgaryBusiness/cs.cs-09-18-0082.html |
Scott Larmer (Larmer)
Junior Member
Username: Larmer
Post Number: 68
Registered: 5-2003
| | Posted on Wednesday, September 17, 2003 - 11:01 pm: | |
do you have any details about this $140m salary? |
Nebula Class (Nebulaclass)
Member
Username: Nebulaclass
Post Number: 505
Registered: 11-2002
| | Posted on Wednesday, September 17, 2003 - 10:05 pm: | |
Kind of a shame. From what I've heard, he did a fine job as chairman. It's not exactly his fault that he was given the salary, unless I'm wrong.
But regardless, the dude ain't out on the street or anything. |
DL (Darth550)
Member
Username: Darth550
Post Number: 305
Registered: 7-2003
| | Posted on Wednesday, September 17, 2003 - 9:11 pm: | |
He had a good year!
DL |
Robert McNair (Rrm)
Member
Username: Rrm
Post Number: 664
Registered: 5-2002
| | Posted on Wednesday, September 17, 2003 - 9:06 pm: | |
I just heard on the news that Richard Grasso chairman of the N.Y.S.E.resigned due to the hubub of his 140 million dollar salary. Any opinions? |
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