Securities industry executives sitting on the
New York Stock Exchange
board of directors could be an endangered species.
In his first major policy initiative, newly appointed interim chairman John Reed will seek to have executives who work for the same firms the NYSE regulates removed from the board, according to
The Wall Street Journal
There are currently six people fitting that description:
Chief Executive Henry Paulson;
Chairman James Cayne;
CS First Boston
Chief Executive John Mack;
Chief Executive Philip Purcell;
J.P. Morgan Chase
Chairman William Harrison; and
Chief Executive Stanley O'Neal.
Paulson reportedly first floated the same proposal following the resignation of Richard Grasso on Sept. 17 in a flap over his enormous pay package. Paulson is said to have told Reed he plans to resign from the board once the transition to new leadership is completed. Meanwhile,
chairman Juergen Schrempp left the board on Friday, saying the job had become too time-consuming, while Carl McCall resigned earlier last week.
Reed is apparently pushing for a much smaller board of roughly 12 members, which will set compensation and vote on corporate governance issues and audits. At present, these issues are determined by special committees within the board, which comprises 27 members, according to the