NYSE President Will Become Chairman

The New York Stock Exchange named its current president, Richard Grasso, as chairman Thursday. He will succeed William Donaldson, who said in July that he would not seek a second four-year term.

Grasso, 48, was passed over for the top spot in 1991, when Donaldson, now 63, was selected.

The promotion of Grasso is seen as a radical departure for the exchange. Grasso has spent his entire 27-year career at the exchange and never graduated from college. According to the New York Times, critics did not see him as polished enough for the post.

Grasso has been executive vice chairman of the exchange since January, 1991, and president and chief operating officer since June, 1988. He becomes the first career employee to be named chairman and chief executive in the 200-year history of the exchange.

Grasso is said to have an impressive knowledge of the exchange and to be very popular among traders and staff members, and he was widely thought to be the leading candidate to succeed Donaldson.

Donaldson formally announced Grasso’s promotion when he took the floor of the exchange a few minutes before the end of the trading session Thursday. Grasso will take over June 1, when Donaldson’s term expires.

Speaking over the cheers of traders, Grasso thanked them in a two-minute greeting.