NYSE releases report on Richard Grasso

NEW YORK, Feb. 2 (UPI) -- The New York Stock Exchange Wednesday released its report on the controversial compensation awarded to its former chairman, Richard Grasso.

The more than 130-page report concludes Grasso's pay was excessive and far beyond reasonable levels. The process that led to Grasso's pay was multi flawed, the report said, noting "Grasso was involved in or connected to the process," which the report said was against "proper governance practices."

The NYSE commissioned the report from former prosecutor Dan Webb after Grasso was ousted from the exchange in September 2003, following controversy over his hefty pay package.

The controversy increased in August of that year, when the NYSE announced a new contract for Grasso and agreed to pay him a lump sum of $139.5 million for savings, retirement and other benefits.

Under the leadership of new NYSE Chairman John Reed, the exchange referred the report to New York Attorney General Eliot Spitzer, who, after failing to reach a settlement with Grasso, filed a civil lawsuit against the former NYSE chief.

Spitzer, who alleged Grasso's pay was excessive, also sued former NYSE board member Ken Langone, who once headed the NYSE's compensation committee. Grasso and Langone have both denied wrongdoing.

The report alleges Grasso accumulated "excess pension benefits" of between $101.4 million and $113.6 million.