Catherine R. Kinney and Robert G. Britz, co-COOs and members of the NYSE's board of directors, each earned $2.7 million in salary and bonus in 2002 and $2.9 million in 2001, according to the exchange. In addition, under the exchange's retirement plan, each stands to receive more than $22 million when they retire.
John S. Reed, the exchange's interim chairman and CEO, wrote in a letter to NYSE members that for calendar year 2004 and beyond, he would "modify some features of our plans." He added: "These changes will be fully disclosed but should be made carefully, keeping in mind that we are a successful enterprise with a singular franchise facing important challenges and must keep and have the very best management."
Sean Harrigan, president of the $149 billion California Public Employees' Retirement System, Sacramento, urged Mr. Reed to renegotiate the pay packages. "I cannot comprehend the justification for the sharp increases in pay generated in the midst of the bear market," he said in a statement. "They are out of the ballpark when you compare them to the salaries of other exchanges in the United States."