Schrempp quits NYSE board

The controversy over the $140m pay package for former New York Stock Exchange chairman Richard Grasso claimed another victim yesterday with the resignation of DaimlerChrysler chief executive Jürgen Schrempp from the NYSE board.

A spokesperson for the German-American car maker said Mr Schrempp was standing down to allow the NYSE board to "redefine itself". Mr Schrempp was unhappy with Mr Grasso's pay award. Last month he asked a board meeting whether the package was in the exchange's best interests and demanded to know if independent advice had been sought by the NYSE compensation committee. He was told a consultant had found that a revised deal would have saved the exchange more than $3.5m.

Mr Schrempp's move follows the resignation of Carl McCall, former New York state comptroller and head of the exchange's compensation committee, from the so-called "big board" on Friday. In a letter to interim chairman John Reed, Mr McCall said he was resigning to allow the exchange to restore its integrity without being encumbered by the past.

Mr Grasso resigned this month after news of his wind fall brought a torrent of criticism from investors, public pension funds and politicians. He had been at the exchange for 36 years and was praised for his leadership in the months after the September 11 attacks, but his position became untenable when news of his pay package broke. Mr Grasso, who had been head of the exchange since 1995, gave up $48m of the award to quell the protests but stepped down saying his resignation would be in the best interests of himself and the exchange.

NYSE members have not confined their protests to Mr Grasso and have called on other directors to quit.