Video: Trading tactics

updated 4/8/2005 2:56:26 PM ET 2005-04-08T18:56:26

The former chairman and chief executive officer of a Boston investment firm was elected chairman of the New York Stock Exchange's board of directors, the exchange said Thursday.

Former State Street Corp. executive Marshall N. Carter had been the front-runner to succeed John Reed, the former co-CEO of Citigroup Inc. who took over the chairmanship in 2003 after former chairman and CEO Richard A. Grasso resigned amid controversy over his pay package.

"It's a great privilege to chair the board of the world's leading equities market," Carter said in a statement. "My colleagues on the board of directors, the board of executives and the management team will continue to ensure the pre-eminence of the NYSE and America's capital marketplace."

Carter joined State Street in 1991 as president and chief operating officer, then became CEO in 1992 and added the post of chairman in 1993. He retired in 2001.

A decorated Marine officer wounded in combat in Vietnam, Carter, 64, also has been a White House Fellow and headed a government task force dealing with global securities.

His contacts in Washington could give the NYSE better political standing as the Securities and Exchange Commission prepares to implement new stock-trading regulations approved Wednesday.

The private, not-for-profit NYSE is owned by its 1,366 seat holders, who voted for the board candidates by proxy prior to the board meeting. The vote expands the board from nine to 10 members.

Reed, who started as an interim chairman and then agreed to a one-year term, oversaw John Thain's hiring as CEO and guided the board through the Grasso crisis.

"John came to the exchange with a strong sense of public purpose, and took bold action during a difficult and challenging time," Thain said.

Grasso resigned amid intense criticism over his $187.5 million pay package. He is being sued by New York Attorney General Eliot Spitzer, who wants at least $100 million returned to the NYSE.

Thain currently makes $4 million per year in salary and bonuses. Carter will receive $250,000 annually as chairman, NYSE spokesman Ray Pellecchia said.

Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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