From the recent fiery debate in the New York Stock Exchange over the remunerations of its Chairman and Chief Executive, the question as to what separate "Reasonable Remuneration" from "Greed" makes it relevant to our Singapore experience too.
The Chairman and Chief Executive of the NYSE had probably assumed that he had provided the environment to allow everyone listed on the Board to make more millions than himself, and in so doing should also be remunerated in similar quantum.
Likewise, our own Political Leaders had felt that the Ruling Party had provided the right political economic environment to allow the many MNCs to operate in Singapore and whose CEOs are paid handsomely, why should our Singaporean Political Leaders be paid lesser than the CEO's of foreign and local Corporations ?
Singapore's politicians are the highest paid in the World, and is done so on the flimsy excuse that Leaders in Government should be paid handsomely so that they will be fall into corrupt temptations.
The wages of Leaders in either the Political and Economic sectors should reflect the Standard and Cost of Living of the country, and should be commensurate with the wages of the population.
The average worker at the bottom of Singapore's society earns an average of $500 to $800 per month, the Middle Income Wage Group is averaging between $1200 to $3000 per month (topping at $5000), and the Upper Income starts from $5,000 to $25,000 per month; while the Super Income starts at $30,000 per month.
If US Corporate leaders are paid salaries averaging $200,000 annually, (without bonus considered) - it explains the wage paid to the US President to be the same - while the average US Citizen in the Middle Income Group averages $60,000 annually
Venerable Grasso now a symbol of greed NYSE chief quits after furore over $246m pay package NEW YORK - They were just a few lines among hundreds of pages of documents, but they were enough to cost the head of the world's largest stock exchange his job.
Mr Dick Grasso, chairman and chief executive of the New York Stock Exchange (NYSE), was ousted at an emergency meeting of the bourse's board on Wednesday - ending a 36-year career that unravelled in less than a month after a huge US$140 million (S$246 million) one-off payout was disclosed.
Once described as 'the hero of Wall Street' for his efforts at promoting the NYSE, Mr Grasso now finds himself branded a symbol of Gordon Gekko-like greed. The infamous character in the 1980s hit movie Wall Street believed 'greed is good'.
Mr Grasso's huge payout was made up of combined retirement benefits - and was on top of his annual salary and bonus.
The lump sum, quietly amassing for years and earning annual interest of a guaranteed 8 per cent, had been kept a secret, along with his basic salary and bonus.
But in the wake of corporate accounting scandals such as Enron's, the NYSE faced growing criticism that it was failing to meet the standards it demanded from listed companies.
On Aug 27, it caved in and gave the media limited access to hundreds of pages of documents that it had submitted to the Securities and Exchange Commission (SEC).
Mr Grasso's secret stash was finally made public.
Even his most ardent supporters were aghast - the earnings were more in line with the chief of a large profitable company, than a Wall Street regulator.
Even his basic salary and bonus averaged a hefty US$10.9 million a year.
Wall Street's elite, who have prospered under Mr Grasso's stewardship over the years, found themselves on the same side as outraged investors and regulators.
So on Wednesday night when he offered to submit his resignation to the NYSE board if they requested it - they did.
Mr Grasso, 57, a college drop-out who started out as a clerk at the exchange and worked his way up, said later in a statement that he submitted his resignation 'with the deepest reluctance' and that this was 'in the best interests of both the exchange and myself'.
Institutional investors cheered the move yesterday.
'Mr Grasso's resignation was a necessary step to restore confidence in the exchange,' said California Controller Steve Westly, who sits on boards of California's state pension funds.
Ironically, his resignation came two years to the day after his greatest triumph, when he reopened the NYSE after the Sept 11 attacks.
But even that career pinnacle has been tarnished by the surprise disclosure that he had received a US$5 million bonus for his performance that day.
Mr Grasso's resignation is expected to trigger corporate governance reforms within the exchange. One focus has been the process by which various NYSE compensation committees approved their chief's pay.
'It's a very sad time for the NYSE,' said long-time NYSE member Francis Maglio. 'He wasn't in this alone. Other people have to share responsibility for the demise of a man who spent his entire life at the NYSE and loved it.'
Meanwhile, attempts to find a swift replacement for Mr Grasso foundered when California lawyer Larry Sonsini turned down the job of interim chairman. -- Bloomberg, Los Angeles Times, Reuters
http://straitstimes.asia1.com.sg/topstories/story/0,4386,210497-1064008740,00.html?