updated 3/5/2004 11:12:12 AM ET 2004-03-05T16:12:12

Up to 65 former members of the New York Stock Exchange board of directors have received subpoenas from regulators asking for documents detailing deliberations over the pay of former chairman Dick Grasso, according to a person close to the investigation.

Speaking on condition of anonymity, two additional sources told The Associated Press the subpoenas from the Securities and Exchange Commission targeted directors who were involved in approving Grasso's $187.5 million compensation package, the furor over which led to his resignation in October.

Both the SEC and New York Attorney General Eliot Spitzer are investigating the matter and are considering charges not only against Grasso, but also against any director that may have violated public trust by approving the package.

Spokesmen for Spitzer, the SEC and the NYSE had no immediate comment late Thursday.

Spitzer's office is preparing a case against Grasso and a number of unidentified former board members over the compensation package, a source told The Associated Press on Monday. Settlement talks with Grasso and the former board members are ongoing, though Spitzer's office is inclined to bring the suit if negotiations fail, the source said.

In January, the NYSE's board of directors forwarded an internal report by former federal prosecutor Dan K. Webb to the Securities and Exchange Commission and Spitzer requesting investigations. The private Webb report claims $100 million in overpayments were made to Grasso's pension accounts and $40 million was paid in excessive deferred compensation, a source familiar with the matter told The Associated Press on condition of anonymity.

The NYSE has since adopted reforms that include splitting the responsibilities of chairman and CEO, and to appoint a chief regulatory officer. The NYSE board was also overhauled. None of the current members served when Grasso's lavish package was negotiated.

Copyright 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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