title: “Flip Flop” ShowToc: true date: “2023-01-14” author: “Jackie Haug”
But NEWSWEEK has learned that the exchange now appears to be backtracking. Richard Adamonis, a spokesman for the NYSE, says “there are no plans” to remove the plaque–at least for now. Adamonis says there have been “discussions” about the subject among officials at the exchange, but that John Thain, the NYSE’s chief executive has not approved the plan.
Adamonis won’t say which way Thain is leaning. “The plaque is still in place,” he added. But one NYSE insider tells NEWSWEEK that there is little chance the plaque will be removed anytime soon. “I’m not saying it won’t happen, but the feeling right now is that its unlikely,” the sources says.
Grasso was forced to leave the NYSE last year amid controversy over his $139.5 million pay deal. The Tiffany plaque was widely seen as a symbol of his chairmanship and his leadership after the terror attacks devastated downtown and shut down trading.
But the plaque had been controversial since it was first placed on the facade of the exchange. Critics say that because it is signed “Dick Grasso, Chairman and CEO,’ the plaque it gives too much credit to Grasso and not enough to all NYSE members for rebuilding the exchange following 9/11.
After Grasso’s ouster, a vocal group of members, led by Grasso critic Michael LaBranche, the CEO of specialist firm Labranche & Co., convinced the management of the exchange to consider its removal. LaBranche confirmed that he is a critic of the plaque but says he will play no role in whether it remains on the exchange building.
Others have advocated adding the words “and members of the exchange” to the plaque’s signature line rather than removing the plaque all together. One thing is certain: The controversy has aggravated an already poisonous dispute between Grasso and the exchange. John Reed, chairman of the NYSE, wants Grasso to return a chunk of the money to the exchange, but Grasso has steadfastly refused. (Reed has said he didn’t know about the proposal to remove the plaque.)
Meanwhile, New York Attorney General Eliot Spitzer is seeking a negotiated settlement, in which Grasso would return at least $50 million of the $139.5 million he received last year. If a deal isn’t reached, Spitzer is threatening to file charges against Grasso under the New York State’s not-for-profit law. Those charges could be filed by the end of the month.
In his first public comments since being fired from the exchange last year, Grasso told NEWSWEEK that he won’t return a dime and even wants an apology from the exchange for destroying his reputation. People close to Grasso say that when he heard the news that the exchange planned to remove the plaque, he dug in his heels even more. “It was such a cheap shot,” says one Grasso insider.
Grasso, through a spokesman, says the removal of the plaque is an “insult” to the families of the victims of 9/11, with whom Grasso has remained close. The spokesman also says plaques bearing the names of NYSE chairman are common at the exchange. “Why are they singling out Mr. Grasso?” he asks.
One reason for the NYSE’s flip-flop may be the public reaction to the removal plan. Grasso received nearly a dozen telephone calls of support from top New York officials, including former mayor Rudolph Giuliani, who helped unveil the plaque on the first anniversary of 9/11. Even some Grasso critics on Wall Street couldn’t believe that the exchange would take the step, given its desire to reach a settlement with him over the pay controversy. “Why would they do something so stupid?” asked one Wall Street executive.
