Coast Capital might have been wrong to call on FirstGroup to restore its dividend, but it is absolutely right to seek a swifter exit from U.K. railroads...
On May 31, 2019, Vice Chancellor Sam Glasscock of the Delaware Court of Chancery issued a decision refusing to dismiss a stockholder’s fiduciary duty claims challenging the compensation of Goldman Sachs’ board of directors. [1] The case highlights the type of claim potentially available to stockholders in challenging board (and sometimes executive) compensation, and it provides important guidance for boards when considering the possibility of such a challenge. The decision also reflects the relative uptick we have seen in demands and challenges from stockholders and plaintiffs’ attorneys relating to board compensation...
When Boeing 737 Max aircraft crashed in Indonesia and Ethiopia, killing a total of 346 people in October 2018 and March 2019, the disasters raised serious questions about the safety of the aviation leader’s anti-stall system...
Directors have fiduciary duties, and the most litigated and most demanding of those duties is the duty of loyalty. The key questions for duty of loyalty litigation are director-by-director questions: Did this particular director have a conflict? Is it futile to make a demand on that particular director?...
Dear readers,
Slack's non-IPO was no doubt the big story of the week, with its success leading some to predict the market could soon see many more direct listings.
Colin Stewart, Morgan Stanley's lead banker on Slack's public debut, told Bloomberg we could see as many as five direct listings in 2020. To put that into context, the only two high profile direct listings in the last two years have been Slack and Spotify...
According to the U.S. Spencer Stuart Board Index, boardrooms are “reshaping themselves with fresh skills, qualifications, and perspectives.” I underscore the last word in the aforementioned quote to impress upon you that to win a seat at that board table you are after, you must craft your resume through unique lenses. To revive your board profile, discard the traditional narrative, and communicate a personal, modern and mobilizing board candidacy. Make your resume serve as a vessel for your distinct leadership voice...
According to PG&E's corporate governance guidelines as of April 5 of this year, all members of the board of directors are elected each year and serve ...
Carnival Corp. and its subsidiary Princess Cruise Lines was fined $20 million earlier this month by the U.S. Department of Justice for violating the terms of probation and dumping plastic and other waste overboard. The original transgression cost the company $40 million two years ago. The case points out, pardon the pun, how hard it is to “turn the ship around” when the ship is a large, multinational company...
Dan Loeb's Third Point recently revealed that it had accumulated a $1.5 billion stake in Sony (NYSE: SNE) , and advocated a spin-off of its semiconductor business to finance a more aggressive expansion of its film and gaming businesses. Third Point's stake in Sony wasn't surprising, since it has already invested in the Japanese conglomerate before...
Former Amazon executive John Rossman recalls attending meetings of the company’s senior leaders (S-teams) and sitting in silence for fifteen or twenty minutes before an active discussion began. During that silence, CEO Jeff Bezos and the other senior leaders were participating in a ritual that could radically transform your business—it did for Amazon...
(Bloomberg Opinion) -- The California Public Employees’ Retirement System is after the new holy grail of investing: Doing well by doing good. Calpers, the largest U.S. pension fund with roughly $360 billion in assets, sponsored a proposal at casino operator Red Rock Resorts Inc.’s annual meeting last week requiring that board nominees running unopposed receive approval from a majority of shareholders...
Continued shareholder activism will keep proxy advisers under scrutiny, Columbia Law scholars say. Continued activism by shareholders seeking to influence corporate policy means that proxy advisory firms will remain busy—but they themselves may be subject to new forms of regulation, business law faculty members said at a June 7 conference on mergers and acquisitions and corporate governance...
After large losses in 2015 and 2016, Ackman has outperformed for the past 2 years June 17, 2019 Regular readers of my articles will know that I like to keep an eye on well-known investors who have fallen from grace. I enjoy trying to gain an understanding of why these investors started to struggle in the first place, and the strategy they used to recover...
Why Is Everyone Talking About CEO Pay? Say Contributor Reblog Earlier this year, 57% of Disney shareholders approved a compensation package for CEO Bob Iger that will be worth as much as $35 million. That’s for one year’s worth of work, mind you. Abigail Disney, filmmaker, philanthropist and granddaughter and grand niece of company co-founders Roy and Walt Disney, responded that CEOs "in general are paid far too much."
Ask any venture capitalist about the most important ingredient to success in startups, and they’ll tell you it centers on founders who can persuade not only investors to part with some of their capital but, more important, who can convince people to leave what are often more stable jobs in order to build a company from scratch. Ryan Cohen certainly fits the description.
According to data from Juniper Research, the average cost of a data breach will exceed $150 million by 2020 — and by 2019, cyber-crime will cost businesses over $2 trillion — a four-fold increase from 2015.
After more of than a year of one corporate scandal after another— faked emissions tests , claimed improper payments , executive financial misconduct , and even arrests —Nissan may face yet another problem. CEO Hiroto Saikawa reportedly received a bump to a stock-based bonus when the company’s board rescheduled by a week the date it the shares were priced...
Board Diversity by Term Limits? Posted by Yaron Nili (University of Wisconsin) and Darren Rosenblum (Pace University), on Monday, June 10, 2019 More from: Darren Rosenblum , Yaron Nili Yaron Nili is Assistant Professor of Law at the University of Wisconsin-Madison Law School; and Darren Rosenblum is Professor of Law at Pace University Elisabeth Haub School of Law. This post is based on their recent article , forthcoming in the Alabama Law Review .
A new study by Corporate Board Member, a division of Chief Executive Group and a market leader in board education, along with Ernst & Young LLP, a leader in assurance, tax, transaction and advisory services, shows that 48 percent of corporate directors report being unconvinced that their boards have the appropriate ...
A diverse board also keeps the organization charging forward in its work, Ronni Chandler, executive director and chief executive officer of Project ...
Email MEMPHIS, Tenn. — Police have identified a man shot and killed Friday night outside a Midtown church. Investigators initially said Glenn Cofield, 57, was shot to death in the parking lot of Greater Lewis Saint Missionary Baptist Church on East Parkway N. after an "argument," but they later said it happened during an attempted robbery. Cofield was a beloved community leader, husband and father of three from Memphis.
I'm just a volunteer on a board of directors .” It's better to ask about risks and protections before accepting a nomination to serve. Directors are trustees ...
The intensifying spotlight turned on boards of directors and management teams by investors prompts a fresh look at how public companies approach board development, director succession planning and refreshment in advance of an activist attack, shareholder unrest or a crisis that results in heightened scrutiny...
