Grasso’s Gifts to Charities Disclosed

Richard Grasso directed more than $24 million of New York Stock Exchange funds to charities during his eight years as chairman without disclosing what he was doing with members’ money.

Grasso, who was ousted from the NYSE last year amid controversy over his $188-million pay package, gave $125,000 to the National Italian American Foundation. He’s a vice chairman of the Washington-based group.

Grasso also gave to the Damon Runyon Cancer Research Foundation, where former NYSE pay committee chief Ken Langone is a vice chairman; and to Prep for Prep, a New York City educational trust headed for 12 years by one of Grasso’s advisors, lawyer Martin Lipton.

An informal NYSE “contributions committee” directed all gifts. Grasso had final say, with internal auditors reviewing the process.

Under Grasso, the NYSE’s contributions to nonprofits rose as high as $8 million in 2001 from $837,310 in 1995. Gifts totaled $4 million in 2003.

“Mr. Grasso is extremely proud of the donations made by the NYSE,” said Grasso’s spokesman, Eric Starkman. Grasso was not required to disclose NYSE donations.