NYSE chairman Grasso resigns under pressure

Mr Richard Grasso, the head of the New York Stock Exchange, resigned last night in the face of mounting pressure over a $140 …

Mr Richard Grasso, the head of the New York Stock Exchange, resigned last night in the face of mounting pressure over a $140 million payout.

Mr Grasso's departure, which comes two years to the day after he triumphantly reopened the exchange after September 11th, raises questions about the exchange's dual role as a regulator and for-profit securities market.

While Mr Grasso's record of building the exchange's business was never in question, the public outcry over the size of the 57-year-old executive's compensation and lack of disclosure about it cost him the support of key Wall Street figures.

The criticism mounted in recent days, with calls for his resignation coming from top state pension funds, floor traders and politicians. Mr Grasso bowed to the pressure and tendered his resignation in an emergency board meeting called yesterday.

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Mr Larry Sonsini, a prominent West Coast securities lawyer and NYSE board member, was asked to take Mr Grasso's place on an interim basis. It is not known whether or not he has accepted.