Former New York Stock Exchange head Richard Grasso structured his departure as a ”termination,” entitling him to $57.7 million for deferred pay and severance payments, the Wall Street Journal reported Wednesday.
The $57.7 million figure comprises $48 million in future compensation that Grasso previously said he would forgo and $9.7 million in pay and benefits under the contract extension he had signed in August, when details of his compensation were first released.
The former chairman and chief executive officer left the Big Board amid a storm of criticism about his almost $140 million pay package.
On Grasso’s last day on the job, he spoke with lawyers, including one who helped structure his most recent NYSE pay contracts, said the paper citing people with knowledge of the conversations. After those conversations, Grasso said he would leave the Big Board if the board of directors voted him out, the Journal said.
While Grasso said he would forgo the $48 million in future compensation, that was never put in writing. Still, he is unlikely to take that money, the Journal said, citing people familiar with the situation. It is not clear, however, whether he will pass up the $9.7 million.
NYSE director H. Carl McCall told the Journal that: “In light of negotiations going on between the exchange and Mr. Grasso, it wouldn’t be right to comment.” A spokesperson was not immediately available to comment to Reuters.
Separately, the New York Times reported on Wednesday that Wall Street lawyer Martin Lipton, chief counsel to the NYSE’s governance committee, consulted with Grasso about portions of his pay package and is now helping to prepare a report about how the exchange needs to overhaul its governance.