The New York Stock Exchange will hold a special board meeting next Wednesday to discuss the controversy surrounding the $188 million (€168 million) remuneration package of Mr Richard Grasso, its chairman.
Amid signs the board is searching for ways to end the controversy, the meeting is likely to be dominated by questions over Mr Grasso's future and proposals from some board members for radical reform in the structure of the world's largest stock market.
The meeting was called as Mr Michael LaBranche, head of the largest specialist trading firm on the NYSE. Mr LaBranche said Mr Grasso should resign "immediately" so that the exchange "can move forward and restore investor confidence".
US Democratic Presidential hopeful Senator Joseph Lieberman had earlier called on Mr Grasso to step aside. "Instead of setting an example of ethical leadership for the market he oversees, Mr Grasso's behaviour has shaken the faith of investors and the foundation of the stock exchange," he said.
SEC chairman Mr William Donaldson yesterday told a House of Representatives Financial Services Committee hearing that his agency had further questions for the NYSE on its governance and the pay package.
But, speaking after the hearing, he defended the beleaguered stock exchange executive. "Mr Grasso has been, in my view, a superb manager of the New York Stock Exchange."
All this comes after the leaders of some of the biggest pension funds called for Mr Grasso to quit.
