Source: Spitzer Preparing to Sue Grasso

[NNN0LHI]

http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=749&e=7&u=/ap/20040301/ap_on_bi_ge/nyse_grasso

ALBANY, N.Y. - The state attorney general is preparing to sue former New York Stock Exchange (news - web sites) head Dick Grasso and his former board members over nearly $120 million in retirement benefits Grasso received, a source familiar with the case said Monday.


Attorney General Eliot Spitzer's office is in settlement talks with Grasso and board members, but was "leaning toward" bringing a lawsuit if the negotiations fail, the source said, speaking on condition of anonymity.


The suit would accuse Grasso and the board members who approved the lavish pay package of failing in their fiscal responsibilities under state nonprofit organization law, the source said.


Grasso left office Sept. 17 amid a public furor following the NYSE's revelation that he'd been awarded $187.5 million in retirement benefits and deferred compensation.

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[northernsoul]

1. Spitzer is an ass-kicker

I hope he runs for NY Gov soon - this guys got the stones to lay down the law.

[morgan2]

4. i hope he takes asscroft's job in 2005

[wicket]

2. Elliot Spitzer rules!

And he's pretty easy on the eyes too ;-)

[BigBigBear]

3. I guess I don't get this

Grasso got this obscene compensation package from the NYSE. Word got out, during a time of depressed stock prices, layoffs and generally crappy economic news, and now everyone is mad at this guy for what the NYSE paid him, demanding it was "too much" and he should "give it back".

Is there some legal reason he should give it back, other than just about everyone believes it was "too much"? I mean, did the guy break the law or something, profit by some illegal behavior?

I'm all for sanity in compensation, and I do find those numbers were fairly ridiculous, but on what legal basis can they extract the money back from him?

[NNN0LHI]

5. It it explains why in the article

>>>The suit would accuse Grasso and the board members who approved the lavish pay package of failing in their fiscal responsibilities under state nonprofit organization law, the source said. snip

Spitzer has successfully brought cases against other nonprofit organizations and foundations in the past over what was termed "unjust enrichments." In those cases, the key was whether compensation packages and other spending was similar to spending at other foundations of about the same size.<<<

[pw]

6. Nonprofits boards have a fiduciary responsibility for their assets

It doesn't really matter if they spent the money on jobs for their inlaws or on retirement benefits for Grasso; if it wasn't spent in a reasonable fashion on the chartered goals of the organization, they were violating their duty.

In a for-profit corporation, a shareholder lawsuit (or an SEC action) could accomplish the same thing if the board of directors gave the shareholders' money away for no good reason.

[NNN0LHI]

7. And these ain't uneducated mopes who were giving each other...

...hundreds of millions of dollars in renumeration who didn't know what they were doing was against the law either. They ain't stupid. The greed just got to them and it became abusive. The whole bunch should be in Sing Sing for even thinking about trying to pull a swindle like this.

Don

[PROGRESSIVE1]

8. It's about time!!!! Grasso is another spoiled Rethug!!!!!!!!

:wtf: did he ever do to get that much money????