Spitzer Says Grasso Was Paid $190 Million

Richard Grasso was paid about $190 million during his eight years as chairman and chief executive of the New York Stock Exchange, New York Atty. Gen. Eliot Spitzer alleged in a motion filed Monday.

Spitzer’s allegation is his first public estimate of Grasso’s pay since Grasso resigned as head of the world’s largest stock market on Sept. 17. The amount includes $140 million Grasso received in August, which prompted some members and investors to call for his ouster. It doesn’t include $48 million that Grasso turned down in September, Spitzer spokesman Darren Dopp said.

Spitzer, who is suing Grasso to recover at least $100 million of Grasso’s pay, made the estimate in a motion seeking to move the lawsuit back to state court, where Spitzer originally filed it. Grasso’s lawyers moved the case to federal court in June.

Spitzer claims that Grasso manipulated the NYSE’s board into granting a pay package that violated state law governing nonprofit organizations such as the exchange.

Grasso’s lawyers, led by Brendan Sullivan Jr. of Williams & Connolly, said the suit should be heard in federal court because the Securities and Exchange Commission supervised the NYSE. Grasso was “acting under an officer of a federal agency,” they said.

Spitzer’s motion said federal courts should not apply “when the action relates to traditional internal corporate affairs, such as the payment of compensation to corporate directors and officers.”