Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Sense and Nonsense in ESG Ratings

Interactions between firms subject to market discipline and the environmental, social and governance (ESG) context within which they operate have proliferated to the point of influencing board and management behavior, stock prices and corporate valuations—as well as the creation of target investment funds tied to specific ESG outcomes.  In this paper we propose a heuristic […]

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The Download on Data

Data is and continues to be a game changer for organizations across the world. Data science is evolving at an incredible pace, providing opportunities for companies to develop new, or enhance existing, products and services, and streamline operations and employee experience. Unfortunately, breaches and abuses are occurring with alarming frequency, impacting people in very real […]

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Statement Regarding Audit Quality in Emerging Markets and Recent Developments

Background Over the past several years, the exposure of U.S. investors and our capital markets to companies with significant operations in emerging markets, including China, has increased. This increased exposure carries with it a number of significant risks and challenges, many of which we described in our statement of December 7, 2018 and our more […]

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Public Thrift, Private Perks: Signaling Board Independence with Executive Pay

Boards of directors set CEO pay. Understanding how directors’ incentives affect compensation contracts is therefore essential for understanding executive pay. In a recent paper, we contribute to this goal by proposing a model in which we analyze CEO pay explicitly as a board decision determined by director independence and by directors’ reputational concerns.  In the […]

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Silicon Valley and S&P 100: A Comparison of 2020 Proxy Season Results

In the 2020 proxy season, 146 of the technology and life sciences companies included in the Fenwick—Bloomberg Law Silicon Valley 150 List (SV 150) and 98 of the S&P 100 companies held annual meetings that typically included voting for the election of directors, ratifying the selection of auditors of the company’s financial statements and voting […]

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Compensation-Related Considerations for the 2021 Proxy Season

Companies poised to enter into the upcoming annual report and proxy season should start disclosure preparations early in order to address the complexities that will have inevitably resulted from an unprecedented 2020. In particular, companies will need to take proactive steps to evaluate the impact of the COVID-19 pandemic on executive compensation, the role of […]

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Innovation in the Stock Market: Exchanges and ATSs

Is something wrong with the structure of the stock market? Both industry participants and scholars have recently faulted the equity market for its lack of innovation. Economists at Harvard, Chicago, and elsewhere have argued that the continuous nature of modern trading bakes in a problematic arms race among high-frequency traders for speed. Stock exchanges process […]

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Preparing for Shareholder Activism in the Wake of COVID-19

The shock, turmoil, uncertainty, and lack of visibility that followed the immediate onset of the coronavirus (COVID-19) pandemic in March 2020 were significant factors accounting for why shareholder activism was relatively subdued during the 2020 proxy season. However, given that activist investors have now had more than eight months to acquire their “sea legs” and […]

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When That Problematic Board Member Just Won’t Leave

Sometimes a corporate director who’s the main source of a company’s reputational problems is the last one to recognize it. That’s why, in order to protect the company from unwanted controversy and reputational harm, boards benefit from discreet tools to remove problematic officers and directors before their terms are up, and without going through a […]

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IPOs Surge While Market Tightens, But Opportunities Remain

Special purpose acquisition companies (“SPACs”) grabbed the investment spotlight this year and remain among the most active investment classes in the market. While the SPAC model has evolved over the better part of the past two decades, SPACs have recently enjoyed an unprecedented surge in popularity as a result of a number of high-profile SPAC […]

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