Richard Grasso's case brought Wall Street wages into the spotlight

Mr Grasso has been fighting to keep hold of a $187.5m (�101m) severance package that he accrued while leading the exchange.

A New York judge ruled that Mr Grasso must return about $80m in pension fund payments, as well as interest on loans.

Mr Grasso said the ruling was "riddled with errors" and that he would appeal.

'Every dime'

The court case dates back to 2003, when Mr Grasso resigned amid a furore about the level of his pay and pensions pot.

Mr Grasso said he had built up the payments during 36 years of service at the NYSE and was entitled to the money.

The NYSE, and New York Attorney General Eliot Spitzer, claimed the level of pay and compensation was excessive and took legal action to recover some the money.

Mr Grasso later counter-sued the NYSE claiming breach of contract and accusing his replacement at the exchange, John Reed, of defamation.

Unhappy

Experts said that the ruling by New York Supreme Court Judge Charles Ramos would mean that Mr Grasso must repay about $100m to the NYSE. Explaining his decision, Judge Ramos said that Mr Grasso had failed in his duty to keep the NYSE board fully informed about the size of his pay and compensation package.

After the ruling Mr Grasso said: "Justice Ramos somehow rejected the testimony of dozens of directors that they approved every dime they paid to me, and decided that these men and women did not know what they were doing."

Mr Grasso was credited with raising the profile of the NYSE and of getting the exchange quickly back on its feet after the September 11 attacks.