Until recently, nearly 95 percent of M&A deals triggered shareholder litigation. However, as noted in the New York Times, a Delaware court crackdown on disclosure-only settlements in takeover litigation has driven the current litigation rate to less than 22 percent.
Recently, The Conference Board weighed in on the debate over special compensation arrangements (sometimes called “golden leashes”) between activist hedge funds and the directors they place on public company boards. The Conference Board’s report uses a number of case studies to illustrate the practice and its impact.
Institutional proxy advisor ISS added three new compensation policy FAQs to address problematic pay practices that can lead to a recommendation to vote against pay and equity compensation plans.
Public company compensation committees operate in an increasingly challenging environment. We have compiled recommendations to assist compensation committee chairs in navigating these demands.