22/09/2003 14:05
The New York Stock Exchange board of directors today selected former Citigroup Inc. co-chief executive John S. Reed as interim chairman and chief executive.
Reed, 64, takes over from Dick Grasso, who resigned Wednesday after revelations of his large pay package generated fierce criticism from investors and corporate governance advocates. It was a safe choice by the board. Reed is well-known on Wall Street and is not likely to push for radical changes.
Reed helped build the biggest bank in the United States after his Citicorp merged with Sanford I. Weill's Travelers insurance company, forming Citigroup. Reed ultimately lost out to Weill in a boardroom power struggle for control of Citigroup and disappeared into retirement in 2000. Since then, he has served on several corporate and philanthropic boards and has spent time reading on the beach.
Reed, a Massachusetts Institute of Technology-trained engineer, will officially begin work at the exchange Sept. 30 after returning from vacation off the coast of France. On a telephone conference call today, Reed said he agreed to come out of his three-year retirement to assist the exchange during a time of great uncertainty.
"The institution is simply too important," he said. "I just felt if I could help on an interim basis I would be honored to do so. There are simply times in life when people ask you to do things and the right answer is to say yes."
Laurence D. Fink, chairman and chief executive of the investment firm BlackRock Inc. and chair of the NYSE committee responsible for finding an interim replacement for Grasso, said Reed was the board's first choice for the job.
"We thought the ideal candidate would posses extensive management experience, a strong corporate governance background, be familiar with New York Stock Exchange constituencies, have a good understanding of global capital markets and be a statesman for the NYSE. Mr. Reed fills those roles," Fink said.
Reed, who is to be paid a salary of $1, said he hoped to serve from six months to a year. His main goals will be to find a long-chairman and to develop a new set of corporate governance guidelines to address long-standing criticisms brought to the fore by the criticism over Grasso's pay.
"We all know as a board that we want to get a governance plan in place that is practical and can be made effective for the NYSE, one that is satisfactory to many, many constituencies," he said.
Reed said he would resign his one remaining board membership, at Altria Group Inc., to eliminate any potential conflict of interest. Altria, parent company of cigarette maker Philip Morris International, is listed on the NYSE.
Reed, 64, takes over from Dick Grasso, who resigned Wednesday after revelations of his large pay package generated fierce criticism from investors and corporate governance advocates. It was a safe choice by the board. Reed is well-known on Wall Street and is not likely to push for radical changes.
Reed helped build the biggest bank in the United States after his Citicorp merged with Sanford I. Weill's Travelers insurance company, forming Citigroup. Reed ultimately lost out to Weill in a boardroom power struggle for control of Citigroup and disappeared into retirement in 2000. Since then, he has served on several corporate and philanthropic boards and has spent time reading on the beach.
Reed, a Massachusetts Institute of Technology-trained engineer, will officially begin work at the exchange Sept. 30 after returning from vacation off the coast of France. On a telephone conference call today, Reed said he agreed to come out of his three-year retirement to assist the exchange during a time of great uncertainty.
"The institution is simply too important," he said. "I just felt if I could help on an interim basis I would be honored to do so. There are simply times in life when people ask you to do things and the right answer is to say yes."
Laurence D. Fink, chairman and chief executive of the investment firm BlackRock Inc. and chair of the NYSE committee responsible for finding an interim replacement for Grasso, said Reed was the board's first choice for the job.
"We thought the ideal candidate would posses extensive management experience, a strong corporate governance background, be familiar with New York Stock Exchange constituencies, have a good understanding of global capital markets and be a statesman for the NYSE. Mr. Reed fills those roles," Fink said.
Reed, who is to be paid a salary of $1, said he hoped to serve from six months to a year. His main goals will be to find a long-chairman and to develop a new set of corporate governance guidelines to address long-standing criticisms brought to the fore by the criticism over Grasso's pay.
"We all know as a board that we want to get a governance plan in place that is practical and can be made effective for the NYSE, one that is satisfactory to many, many constituencies," he said.
Reed said he would resign his one remaining board membership, at Altria Group Inc., to eliminate any potential conflict of interest. Altria, parent company of cigarette maker Philip Morris International, is listed on the NYSE.
Related Articles
LATEST NEWS
24/04