NYSE names stand-in chief

Former Citigroup boss John Reed was yesterday named as stand-in chief executive and chairman of the New York Stock Exchange following the departure of Richard Grasso who stood down last week amid fierce controversy over his $140m (£85m) pay package.

Mr Reed, 64, a former chairman and co-chief executive at Citigroup, retired from the bank in April 2000, after a power struggle that left Sandy Weill and former US treasury secretary Robert Rubin in control of the firm.

Laurence Fink, head of the executive search committee set up to find Mr Grasso's successor said the exchange was "pleased and fortunate" at the appointment.

Mr Reed, an exchange outsider who has spent his entire career in banking after joining Citibank in 1965, has told exchange members he will not be a permanent candidate for the position. His appointment was welcomed by the securities and exchange commission. William Donaldson, the SEC chairman, said he was pleased the exchange had taken "prompt action" in recruiting him.

"I am gratified that he is willing to take on this critical post. He is independent, experienced, and had impeccable credentials, all of which will be crucial as he works with the NYSE board to ensure the highest standards of governance."

Mr Reed, who has said he will be paid just $1 for the new job, will step down as a director of Altria Group, his only current directorship, on taking up the new post.

Besides searching for a new head the NYSE is also trying to address concerns about conflicts of interest in a system where the conduct of the exchange and the pay of its top executives are influenced by the members the exchange regulates.