New York Stock Exchange

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The New York Stock Exchange (NYSE) "traces its origins to a founding agreement in 1792. The NYSE registered as a national securities exchange with the U.S. Securities and Exchange Commission on October 1, 1934. The Governing Committee was the primary governing body until 1938, at which time The Exchange hired its first paid president and created a thirty-three member Board of Governors. The Board included Exchange members, non-member partners from both New York and out-of-town firms, as well as public representatives.

"In 1971 The N.Y. Stock Exchange was incorporated as a not-for-profit corporation. In 1972 the members voted to replace the Board of Governors with a twenty-five member Board of Directors, comprised of a Chairman and CEO, twelve representatives of the public, and twelve representatives from the securities industry.

"Subject to the approval of the Board, the Chairman may appoint a President, who would serve as a director. Additionally, at the Board's discretion, they may elect an Executive Vice Chairman, who would also serve as a director.

"Currently, the NYSE Board of Directors is comprised of 27 members: 12 directors from the securities industry and 12 public directors, the Chairman and CEO, and the two Presidents, co-COOs and Executive Vice Chairmen."[1]


NYSE Board of Directors (as listed September 26, 2003]


Officers (as listed September 26, 2003)


21 September 2003: NYSE Chairman Search Committee Members:

"Laurence D. Fink, who chaired the search committee.... an NYSE Board member and chairman and chief executive officer of BlackRock, Inc....

"In addition to Mr. Fink, members of the search committee included Madeleine K. Albright, principal, The Albright Group; Robert B. Fagenson, vice-chairman, Van Der Moolen Specialists USA, LLC; Mel Karmazin, president and chief operating officer, Viacom, Inc.; Gerald M. Levin, retired chief executive officer, AOL Time Warner, Inc.; John J. Mack, co-chief executive officer, Credit Suisse Group, and chief executive officer, Credit Suisse First Boston; and Larry W. Sonsini, chairman and chief executive officer, Wilson Sonsini Goodrich and Rosati."


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Headlines

  • 19 September 2003: "Stock Exchange Is Split on Steps After Grasso" by Thomas Landon, Jr., New York Times.
  • 20 September 2003: "Big Board Panel Is Named to Find a New Chairman" by Thomas Landon, Jr., New York Times.
  • 21 September 2003: "In String of Corporate Troubles, Critics Focus on Boards' Failings" by Kurt Eichenwald, New York Times: "Enron. WorldCom. And now the New York Stock Exchange.... The connections are far from tenuous among the corporate world's biggest scandals and the tumult that unfolded at the Big Board after the revelation of its chief executive's huge payout. Indeed, a critical theme runs through the disparate events that sent Enron and WorldCom into bankruptcy and that cost the exchange's longtime boss, Richard A. Grasso, his job last week: All can be traced to a failure on the part of a board of directors to handle its responsibilities, legal and financial experts said."
  • 21 September 2003: "Fixing a Tarnished Market", Op-Ed, New York Times.
  • 21 September 2003: "One Resignation Is Not Enough", Op-Ed by Muriel Siebert, New York Times.
  • 22 September 2003: "Stock Exchange Names Ex-Banker Its Interim Chief" by Landon Thomas, Jr., New York Times: "The directors of the New York Stock Exchange, trying to inject a dose of independence into a board seen as cozy and conflicted, said yesterday that John S. Reed, a former chief executive of Citicorp, would serve as the exchange's interim chairman and oversee its efforts at reform."
  • 23 September 2003: "Executive Close to Grasso Is Retiring From Big Board" by Thomas Landon, Jr., New York Times: "The abrupt departure of the executive, Frank Z. Ashen, 59, who had worked at the exchange for 26 years, is further evidence of how quick the pace of change has become at the exchange."
  • 24 September 2003: "Consultant to Grasso on Pay Is Also Adviser to Exchange" by Thomas Landon, Jr., New York Times: "A powerful Wall Street lawyer who defended Richard A. Grasso's initial plan to take $48 million in future payments is also helping to prepare a crucial report about how the New York Stock Exchange needs to revamp its corporate governance practices.... Martin Lipton, a founding partner of Wachtell, Lipton, Rosen & Katz, has worn a number of different hats as the opposition to Mr. Grasso's $139.5 million pay package has built over the last month: chairman of the exchange's legal advisory committee, chief counsel to the corporate governance committee, and, according to stock exchange directors, sounding board for Mr. Grasso."
  • 25 September 2003: "Big Board Interim Chairman Calling for Fewer Directors" from Bloomberg News: "John S. Reed, who was named interim chairman of the New York Stock Exchange earlier this week[2], wants to shrink the number of directors by more than half, bring "fresh blood" to the board and find a permanent leader within four months, he said yesterday.... Reed said the board should have 10 to 12 directors rather than 27. The exchange also needs new directors to restore credibility since the ouster of its chairman, Richard A. Grasso, after the disclosure last month of his $140 million pay package."
  • 25 September 2003: "McCall Quits Exchange Board Following Grasso's Downfall" by Thomas Landon, Jr., New York Times.
  • 26 September 2003: "Growing S.E.C. Role in Big Board Reform" by Stephen Labaton, New York Times: "The management crisis at the New York Stock Exchange has raised long-dormant questions about whether the exchange can continue to be a regulator and presents a major challenge for the Securities and Exchange Commission....With H. Carl McCall calling for a division of regulatory and commercial functions when he announced his resignation from the exchange's board today, broad change is beginning to seem inevitable."
  • 26 September 2003: "Ex-Controller for New York Quits Big Board" by Landon Thomas, Jr., New York Times: "H. Carl McCall, the politician who vowed to change an ossified New York Stock Exchange but found himself defending the $139.5 million pay of its chairman, resigned from the exchange's board yesterday....The resignation, which he said was voluntary, underscores the uncertainty and upheaval surrounding the Big Board after its former chairman, Richard A. Grasso, resigned."
  • 29 September 2003: "Daimler Chief Quits Stock Exchange Board" by Diana B. Henriques, New York Times: "The chief executive of DaimlerChrysler, Jürgen E. Schrempp, has resigned from the board of the New York Stock Exchange, the second director to quit in the wake of fierce public criticism of the $140 million pay package the board approved for its former chairman, Richard A. Grasso.... Schrempp, who had raised cautionary questions about Mr. Grasso's compensation at a committee meeting in August, wanted "to make way for a restructuring of the board.... [and] also found himself unable to devote the time needed to help guide the exchange through its current crisis."
  • 30 September 2003: "Mr. Reed Goes to Work", New York Times.
  • 17 October 2003: "New Roles and New Faces at the New York Exchange" by Stephen Labaton, New York Times.
  • 18 October 2003: "Chief Is Considering Two Boards to Oversee Exchange, Officials Say" by Landon Thomas, Jr., New York Times.
  • Dominic Rushe, "Grasso denies any excess in $100m pay row: Report claims that friends of the former NYSE chief approved his huge salary", The Sunday Times, February 6, 2005.
  • Dominic Rushe, "Conspiracy theories abound ahead of planned NYSE merger", On Wall Street, The Sunday Times - Business, May 1, 2005.
  • Rachel Beck, "All Business: The conflicted roles in NYSE merger", Post Gazette, May 2, 2005. (This is an Associated Press story).
  • Dan Dorfman, "Langone Readies NYSE Bid", New York Sun, May 6, 2005.