Probe as NYSE chief collects £86m

THE US Securities and Exchange Commission is launching an investigation into the pay practices of New York's self-regulatory organisations in the wake of the $135.5m (£86m) paid to New York Stock Exchange chairman Richard Grasso.

The payout has deepened SEC concerns over the exchange's ability to govern itself as well as police the word's largest stock market.

Many NYSE members were astonished at the wealth amassed by their chairman. Revealing details of Grasso's salary under pressure from the SEC, the NYSE said he receives a $1.4m base salary and a $1m minimum bonus. However, he is likely to earn significantly more due to extra bonuses.

Last year he was paid a reported $12m, and $15m in 2001. Additionally, Grasso is withdrawing $135.5m in retirement benefits, savings and deferred compensation.

Although he has worked at the NYSE for 35 years, long enough to build up a healthy pension fund, the size of his savings caused members to question how much he had been paid over the years.

The NYSE said Grasso's record justified his pay. Since he became chairman in 1995, 1,549 more companies have joined the 2,800 listed. Grasso said he was withdrawing the money for 'personal financial and estate planning' reasons.