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

Finding the Proper Balance of Legal and Consulting Advice for Compensation Committees

Takeaways Executive compensation counsel taking minutes of compensation committee meetings and working with the compensation consultant to make sure the meetings go smoothly with informed decisions translates into a better proxy and a winning say-on-pay vote. Equity plan proposals are more likely to win shareholder approval and less likely to attract proxy trolls when executive […]

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Corporate Governance Update: EESG and the COVID-19 Crisis

The COVID-19 pandemic has caused a societal crisis of far-reaching implications. For the moment, employee, environmental, social and governance (EESG) concerns may appear to have taken a back seat to economic survival, but in the longer term, a robust corporate response will require firms to re-evaluate their priorities. Once the economic recovery has begun in […]

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NYSE Provides Temporary Exception to Certain Shareholder Approval Requirements

The SEC has declared immediately effective (yet another) proposed change to the rules of an exchange—this one from the NYSE. The NYSE has adopted new Section 312.03T of the NYSE Listed Company Manual, which will provide a temporary exception, through June 30, 2020, from the application of the shareholder approval requirements for specified issuances of 20% […]

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COVID-19: Due Diligence Considerations for M&A Transactions

Buyers in M&A transactions should consider a number of due diligence items in response to COVID-19 and the governmental response thereto. As parties pursue mergers and acquisitions transactions during, and in the wake of, the COVID-19 pandemic, both buyers and targets should consider a number of factors from a due diligence perspective, including the impact […]

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Investors Continue To Deserve More From Boards and Courts On Mutual Fund Fees

American investors pay $100 billion every year in mutual fund fees. These fees are deducted from their savings and reduce future investment returns. Over 20 years, the compounded drag on investment returns is well into the trillions, which begs the question: Is even one dollar of these fees “excessive” under the fiduciary standards of the […]

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Director Compensation Practices in the Russell 3000 and S&P 500: 2020 Edition

At its core, the director role is primarily one of stewardship rather than execution. While “pay for performance” has become a mantra for executive compensation in the last decade, the concept does not extend in the same way to director pay. Rather, director pay structures are oriented toward compensating for time commitments and leadership. Retainers […]

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ESG in the Mainstream: Sell-Side Analysts Addressing ESG Concerns

S&P Global, Northern Trust and T. Rowe Price recently announced the expansion of their ESG analytics offerings: S&P Global has launched its proprietary S&P Global ESG Scores which covers more than 7,300 companies; Northern Trust has launched its ESG Analytics Summary which provides investors with snapshots of their portfolio’s ESG performance; and T. Rowe Price […]

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Weekly Roundup: May 22–28, 2020

Statement by Commissioner Lee on Financial Disclosures About Acquired and Disposed Businesses Posted by Allison Herren Lee, U.S. Securities and Exchange Commission, on Friday, May 22, 2020 Tags: COVID-19, Disclosure, Financial reporting, Mergers & acquisitions, Reporting regulation, SEC, SEC rulemaking, Securities regulation, Transparency Remarks by Commissioner Peirce at Meeting of the SEC Investor Advisory Committee Posted by Hester Peirce, U.S. Securities and Exchange Commission, on Friday, […]

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Opening Remarks by Chairman Clayton at the Meeting of the Asset Management Advisory Committee

Thank you, Ed [Bernard]. I would like to welcome everyone to the second meeting of the Commission’s Asset Management Advisory Committee. I am glad that the Committee is able to meet virtually today. Thank you to everyone participating, including Commissioners Peirce and Lee; our panelists; and the members of the Committee. I would like to […]

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Recommendation from the Investor-as-Owner Subcommittee of the SEC Investor Advisory Committee Relating to ESG Disclosure

For close to 50 years, the SEC has periodically contemplated whether ESG disclosures are material and should be incorporated into its integrated disclosure regime for SEC registered Issuers. This recommendation asserts that the time has come for the SEC to address this issue. Addressing ESG disclosure now will (a) provide investors with the material, comparable, […]

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