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NYSE Board Reform Looks Set to Pass

An independent board of eight directors will be created.
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An early count indicates members of the

New York Stock Exchange

have approved a plan to revamp its governance structure by setting up a board of eight independent directors and creating an office of chief regulatory officer.

The changes, which were sparked by the uproar that led to the resignation of former Chairman Richard Grasso in September, would be among the most sweeping ever instituted at the 211-year old exchange, whose clubby atmosphere was faulted for facilitating Grasso's avarice.

The preliminary results were announced Tuesday by the exchange.

Only two members of the old board will also be on the new one: former Secretary of State Madeleine Albright and TIAA-CREF Chairman Herb Alison. The others are Shirley Ann Jackson, president of Rensselaer Polytechnic Institute; Euan Baird, former chairman and chief executive of


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; James McDonald of Rockefeller & Co., Marshall Carter, former chairman and chief executive of

State Street Bank

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Bob Shapiro, former chairman and chief executive of



and Dennis Weatherstone, a former

J.P. Morgan Chase

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The eight directors will have "full fiduciary responsibility" to supervise regulation, governance, compensation and internal controls. They will also appoint an advisory board of industry representatives to develop recommendations on NYSE marketplace operations, membership issues, listed-company issues and public issues relating to market structure and performance.

The board also will appoint a chief regulatory officer who will report to the board's regulatory oversight committee instead of the exchange's CEO. The new setup must be approved by the

Securities and Exchange Commission