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

Temporary Basis NYSE Modifications to Certain Stockholder Approval Requirements

Temporary waivers of related-party and 20% rules granted in light of COVID-19-related financing needs Recognizing that many companies will have “urgent liquidity needs” in the coming months as a result of economic and market conditions related to the spread of COVID-19, on Monday the New York Stock Exchange announced temporary waivers to some of its […]

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Leadership Resiliency in an Emergency

Business continuity planning during the COVID-19 pandemic requires that boards of directors and senior management teams confront the unthinkable: How will the business continue to function if key leaders and decision-makers are incapacitated? Boards, senior management and corporate counsel should consider whether the company has in place appropriate leadership resiliency plans, both with respect to […]

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Considerations for 2020 Incentive Compensation Programs

Considerations for Companies That Have Already Established Their 2020 Incentive Compensation Programs The coronavirus (COVID-19) pandemic and the ensuing market uncertainty as well as recently enacted legislation, have upended the compensation and benefit programs of many companies. We are preparing a series of client memoranda regarding how companies may wish to consider their programs in […]

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Key ESG Considerations in the Crisis

The social and economic turmoil unleashed by the global spread of COVID-19 and the collapse in the price of crude oil has brought to the fore a number of critical incident and systemic risk management concerns, including traditional ESG concerns such as human capital issues, business model and supply chain resilience, and consumer welfare and […]

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Posted in Boards of Directors, ESG, Executive Compensation, Institutional Investors, Practitioner Publications | Tagged , , , , , , , | 1 Comment

A Special Committee to Oversee the Corporation’s Response to the Pandemic

In recent years, discussions of corporate governance best practices have included the pros and cons of having a separate Risk Committee of the Board of Directors. While there has been increased focused on the Board’s oversight of the corporation’s assessment and control of risks, it is not always clear that a Risk Committee is the […]

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The Paradox of Corporate Globalization: Disembedding and Reembedding Governing Norms

Corporate globalization has been the most transformative geoeconomic development of the past half century, and shareholder primacy its force multiplier. Their combination brought great benefits to people and countries well positioned to seize the new opportunities. But that their unfettered expansion would also disrupt social fabrics and overtax natural capital was not only predictable; it […]

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COVID-19 Impact: Potential Risks and Problems in Signed M&A Deals

As COVID-19 continues to rapidly permeate our society and the financial markets struggle to maintain stability, companies engaged in M&A transactions must overcome increased risk and uncertainties. For now, while there are some publicly-announced deals being pulled or being re-evaluated, we have not yet seen a spike in announced signed-deal terminations due to COVID-19. We […]

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Succession Planning in a Time of Crisis

Planning for an unexpected absence or loss of a key person is an important component of enterprise risk management. In the present environment, boards are meeting regularly in real time to address absences of key persons–both temporary and sustained–to ensure that their existing succession plans are withstanding the current test. Another added challenge for some […]

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Navigating Strategic Alternatives in Distressed Scenarios: Takeaways for Boards

As the economy continues to experience daily turmoil in the wake of the COVID-19 crisis, it becomes increasingly likely that some companies will feel the need to enter into dilutive financings and downside exits. This new reality poses heightened challenges for boards and increases the likelihood of litigation, as has occurred in past downturns. For […]

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Governance Litigation and the COVID-19 Pandemic

The pandemic has created massive business disruption, and weeks or months of further market dislocation and volatility seem certain. Equally certain is that stockholder lawsuits will appear as (or perhaps even before) the disruption begins to resolve. Delaware’s Caremark doctrine—which requires directors to monitor the corporation’s compliance with the law and to address indications of […]

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