Donna Gentile O'Donnell: On Wall Street, more lessons in greed

Most students who pursue a college education, especially at an Ivy League school, do so with the hopes and aspirations that a great education will set the stage for a successful career in their chosen field. So more than a few Penn students glance around and take note of what appears to be a flourishing and remunerative occupation.

A look at the life and times of Richard Grasso, the newly resigned former chairman of the New York Stock Exchange, gives anyone evaluating their career path pause.

Grasso -- whose $180 million annual compensation package (which includes $40 million he now says he won't take) has rocked the foundation of the NYSE -- has had one hell of a career track. One might think that Grasso would have a long list of educational credentials. They would be wrong.

Grasso is, in some ways, the uber-company man. After graduating from Newtown High in Queens, N.Y., he served two years in the Army and then joined the Exchange in 1968. He never left. He continued to move up the ladder, expanding his responsibilities and his span of control, culminating in becoming chairman and CEO in 1995. He never bothered to get his ticket punched at a university, except to collect a few honorary doctoral degrees from Fordham, Pepperdine, La Salle, New York and Pace universities.

You might think that a man who has done so well would be a major contributor to his alma mater. Not so. While his old high school in Queens has hosted him as "Principal for a Day," the Fund for Public Schools, which is the major fundraising vehicle for the NYC schools, does not list him personally as a donor. They acknowledge that some of the NYSE companies are donors. But these are corporate donations, not personal donations.

You would think that Grasso, who was estimated to be making $250,000 a day, could see his way clear to writing a personal check to benefit Newtown High. After all, this New York public high school is the source of his only earned educational credential -- a high school diploma.

Grasso is a man of substantial contradictions. Take a look at the yet-to-be-dismantled mission statement and "Welcome from the Chairman" introduction on the NYSE Web site. In it, Grasso says:

"In the U.S. and around the world, good corporate governance has rightly taken center stage. Its motivating issuers -- and markets -- to better serve their shareholders, customers, employers and communities. To that end, our own special committee on NYSE Governance reviewed the structure and practices of the Exchange with an eye toward changes that enable us to better serve the 85 million investors who access our marketplace. The Committee's initial recommendations have already been put into place. We believe they apply the principles that will rebuild public confidence: increasing transparency, enhancing independence, strengthening checks and balances and addressing conflicts of interest. And they are the first of many initiatives to follow. We look forward to the continued exploration of how the NYSE can even better meet our obligation and commitment to the public interest." And it's signed, "Warmest regards, Dick Grasso."

Here, Grasso speaks about the need to rebuild public confidence. Anyone who has looked at a 401K statement would agree with that. But you can't rebuild public confidence by calling yourself part regulator and part entrepreneur, and then fleece the public under the guise of this split role.

Increasing transparency? That's a great idea. But you don't demonstrate a commitment to transparency by stacking more than 1,200 pages of documents that describe (translation: bury) your compensation package in a room with access only by appointment and limited to two hours per session.

Enhance independence? Bring it on, says Chairman Dick... as long as it means that my board, who benefits from my decisions either directly or indirectly, continues to have the "independence" to pay me an obscene amount of moolah.

Strengthening checks and balances? Have at it... just don't tip those balances too far toward those 85 million investors who, indirectly, pay Grasso more in a day than the average American makes in two years.

Conflicts of interests? It appears that nothing conflicts with Grasso's interests. His interests are clearly well served.

There is an argument to be made that Grasso didn't have the credentials to run the Exchange. But the more important issue is this: how did a blue-collar kid from Queens get so far from his roots that he could sleep soundly while he stole from the Moms and Pops and the Little Guys across America? From the teachers at Newtown High, whose 401Ks have taken a beating? From the regular Joes, who came back from the Army with him and are working hard and trying to play by the rules?

Ask Dick Grasso. He'll probably send his warmest regards.

Donna Gentile O'Donnell is finishing her Ph.D. in health policy history at the School of Nursing. She is from Philadelphia, Pa.

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