New York Atty. Gen. Eliot Spitzer filed suit against former New York Stock Exchange Chairman Richard Grasso, claiming that the executive was awarded excessive compensation. This lawsuit is essentially over what company boards pay executives and is a particular concern for non-profit boards around the country. State laws allow for the regulation of compensation at non-profits if it is not thought to be "reasonable." Experts say that a well-established system to set pay is important for all non-profits that wish to avoid future lawsuits.
See "Pay lawsuit a warning to non-profits", Andrew Countryman, Chicago Tribune, May 31, 2004