Dick Grasso Case Study Essay
Question #1
By the beginning of 2001 it was evident the collapse of the NASDAQ was continuing from the previous year. Abuse of analyst coverage came under scrutiny and corporate governance and enforcement begins to take center stage. On September 11, 2001 tragedy strikes and the NYSE closes. But 6 days later, under the leadership of Grasso, the NYSE reopens to much fanfare. Opening the New York Stock Exchange just days after 9/11 was one of the first steps toward rebuilding the financial community. Dick Grasso was celebrated for getting the New York Stock Exchange up and running almost immediately after the attacks of September 11. This year Grasso makes $30 million dollars and is a possible successor to outgoing Treasury Secretary Paul …show more content…
In October 2002, as a condition of new contract negotiations, Grasso proposes taking $51 million of deferred earnings from his previous contract and depositing it into his retirement savings account. New compensation committee members vote to retain outside consultant to evaluate the proposal and deferred decision on the plan. Then, in January 2003 Grasso announces he is changing his contract proposal and wants a cash payment of his accrued retirement in the amount of $130 million. In February 2003, when Dick Grasso is appointed to the board of Home Depot Inc., along with his board membership of Computer Associates Inc., the move is criticized as a potential conflict of interest as both companies are listed on the NYSE. (NYSE’s Grasso remains under the gun, 2003). Grasso defended his role as director, noting it helped him “gain perspective on our listed companies.” (Keenan, 2003) This is a good example of narcissistic behavior in Grasso sense of immunity to consequence, manipulation of the environment for personal gain, and an inability to consider the needs of others. "Narcissism gives people a sense that they can do no wrong – it leads to a very narrow view of the world that starts to justify things for the individual, at the expense of other people." (Effective Leadership: What's Wrong with Narcissism?,
By the beginning of 2001 it was evident the collapse of the NASDAQ was continuing from the previous year. Abuse of analyst coverage came under scrutiny and corporate governance and enforcement begins to take center stage. On September 11, 2001 tragedy strikes and the NYSE closes. But 6 days later, under the leadership of Grasso, the NYSE reopens to much fanfare. Opening the New York Stock Exchange just days after 9/11 was one of the first steps toward rebuilding the financial community. Dick Grasso was celebrated for getting the New York Stock Exchange up and running almost immediately after the attacks of September 11. This year Grasso makes $30 million dollars and is a possible successor to outgoing Treasury Secretary Paul …show more content…
In October 2002, as a condition of new contract negotiations, Grasso proposes taking $51 million of deferred earnings from his previous contract and depositing it into his retirement savings account. New compensation committee members vote to retain outside consultant to evaluate the proposal and deferred decision on the plan. Then, in January 2003 Grasso announces he is changing his contract proposal and wants a cash payment of his accrued retirement in the amount of $130 million. In February 2003, when Dick Grasso is appointed to the board of Home Depot Inc., along with his board membership of Computer Associates Inc., the move is criticized as a potential conflict of interest as both companies are listed on the NYSE. (NYSE’s Grasso remains under the gun, 2003). Grasso defended his role as director, noting it helped him “gain perspective on our listed companies.” (Keenan, 2003) This is a good example of narcissistic behavior in Grasso sense of immunity to consequence, manipulation of the environment for personal gain, and an inability to consider the needs of others. "Narcissism gives people a sense that they can do no wrong – it leads to a very narrow view of the world that starts to justify things for the individual, at the expense of other people." (Effective Leadership: What's Wrong with Narcissism?,