Ex-NYSE Chairman’s Suit Over Pay Dismissed
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A New York state judge has dismissed former New York Stock Exchange Chairman Richard Grasso’s civil lawsuit accusing former Big Board compensation committee chief H. Carl McCall of negligence in setting Grasso’s pay.
The decision made Friday by New York Supreme Court Justice Charles Ramos was related to New York Atty. Gen. Eliot Spitzer’s civil lawsuit over Grasso’s $187.5-million pay package, which claimed that it was excessive under state not-for-profit law. Spitzer is seeking to recover at least $100 million from Grasso.
Grasso contended that if Spitzer’s lawsuit were successful, then McCall, a former New York state comptroller, should be held liable for Grasso’s share of the judgment, or else pay damages for McCall’s alleged negligence.
Ramos, however, concluded that state not-for-profit law does not require board members involved in an “allegedly faulty” pay-granting process to reimburse officers required to disgorge unauthorized payments.
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