Abstract

The case focuses on the allegations of misgovernance at New York Stock Exchange (NYSE) and the governance reforms introduced in the exchange by interim Chairman John Reed. Over the years, NYSE was criticized by the analysts and industry observers for its outdated mode of working and governance practices. The disclosure of Grasso’s compensation led to widespread criticism against the exchange regarding its governance practices. The case brings out the working of NYSE and allegations against it, and it also discusses the reforms initiated by NYSE’s interim CEO and Chairman, John Reed.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• NYSE’s working and governance practices.

Keywords

Allegations, misgovernance, New York Stock Exchange, NYSE, reforms, exchange, Chairman, John Reed, industry observers, outdated mode, governance practices, Grasso's, compensation