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Johnson Files Opinion in Grasso Case

Next month, a jury will begin hearing testimony in the lawsuit filed against former New York Stock Exchange head Richard Grasso by Eliot Spitzer, the New York attorney general. The suit contends that the $80.6 million in compensation and $119.8 million in retirement benefits awarded to Mr. Grasso from 1999 through 2002 was unreasonable and violated the state's laws governing nonprofits. Mr. Grasso contends that the pay was reasonable and justified by his many contributions to the Big Board, a nonprofit organization. Court filings made this week by experts on both sides provide a glimpse of what the jury will hear in the case. The experts submitted their opinions Monday on matters relating to compensation, accounting and corporate governance. Among those submitting opinions on behalf of the attorney general was W. BRUCE JOHNSON, an accounting professor at the Tippie College of Business at the University of Iowa. An entry in the WALL STREET JOURNAL'S "Law Blog" notes the New York Times article.


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