Westly Seeks Release of Report on Grasso’s Pay

California Controller Steve Westly is calling on interim New York Stock Exchange Chairman John S. Reed to release a report on former Chairman Richard Grasso’s compensation to help restore public confidence.

Westly, in a letter to Reed dated Tuesday, said releasing the report would show that the exchange was committed to reforms. Westly is a board member of the California Public Employees’ Retirement System, the largest U.S. pension fund, which sued the NYSE and seven specialist firms last week, alleging that they used the trading system to profit at the expense of investors.

Reed, who replaced Grasso in September, commissioned a report from former U.S. prosecutor Dan Webb on how the NYSE board determined his predecessor’s $188-million deferred pay and benefits package. He has reviewed a draft of the report and last week said it might prove embarrassing to Grasso and the exchange and might be the basis for litigation.

“The Grasso report itself may reveal internal NYSE decision-making, but how the NYSE handles the report’s release will speak volumes about its commitment to genuine reform,” Westly said in the letter.

From Bloomberg News