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

Spotlight on Boards

The ever-evolving challenges facing corporate boards prompt periodic updates to a snapshot of what is expected from the board of directors of a public company—not just the legal rules, or the principles published by institutional investors and various corporate and investor associations, but also the aspirational “best practices” that have come to have equivalent influence […]

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Business Roundtable Comment Letter to SEC on Proposed Proxy Rules for Proxy Voting Advice

This letter is submitted on behalf of Business Roundtable, an association of chief executive officers who collectively lead companies with more than 15 million employees and $7 trillion in revenues. Business Roundtable members invest nearly $147 billion in research and development. In addition, our companies annually pay $296 billion in dividends to shareholders and generate […]

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Society for Corporate Governance Comment Letter to SEC on Proposed Proxy Rules for Proxy Voting Advice

The Society for Corporate Governance (the “Society”) appreciates the opportunity to provide comments to the U.S. Securities and Exchange Commission (“SEC” or “Commission”) on the Amendments to Exemptions from the Proxy Rules for Proxy Voting Advice (the “Proposed Rule”). Founded in 1946, the Society is a professional membership association of more than 3,700 corporate and […]

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SEC Charges for Failure to Disclose Material Trends

The SEC has just settled an action against Diageo PLC, a producer of liquor, wine and beer, for failure to disclose known trends and uncertainties. Diageo’s omission resulted in materially misleading disclosures regarding its financial results and material inflation of key performance indicators—organic net sales growth and organic operating profit growth. It’s worth noting that […]

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Weekly Roundup: February 21–27, 2020

Proxy Season Trends: Make Sure You’re Ready for 2020 Posted by David Bell, Fenwick & West LLP, on Friday, February 21, 2020 Tags: Board composition, Boards of Directors, Diversity, Equity-based compensation, ESG, Executive Compensation, Incentives, Proxy season, Say on pay, Shareholder proposals, Shareholder voting Corporate Purpose and Culture Posted by John Wilcox, Morrow Sodali, on Friday, February 21, 2020 Tags: Accountability, BlackRock, Corporate culture, Disclosure, Environmental disclosure, ESG, Institutional Investors, Sustainability Tax and ESG Posted by […]

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Corporate Opportunity Doctrine: Litigation Continues into 2020

In a short order from the Delaware Court of Chancery, Vice Chancellor Kathaleen McCormick held that a former director may have usurped a corporate opportunity by successfully bidding against his company for a contract to operate a local public access television channel. Leased Access Preservation Assoc. v. Thomas, C.A. No. 2019-0310-KSJM (Del. Ch. Jan 8, […]

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Monitoring the Monitor: Distracted Institutional Investors and Board Governance

The board is a particularly powerful governance mechanism for monitoring firm performance in the U.S., with the power to initiate and approve major corporate decisions and to reward or discipline managers. However, director monitoring incentives do not appear to be particularly strong. Past studies show that the labour market for directors does not punish poorly […]

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ESG Factors and Antitrust

Recently, the World Economic Forum (“WEF”) released a Consultation Draft of proposed common standards for corporate disclosure of environmental, social, and governance (“ESG”) factors. The draft proposal highlights the need for a common framework from which to evaluate corporate actions and their impact on ESG factors. While it is unclear precisely which of the proposed […]

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Investors’ Expectations from the 2020 Proxy Season

For the past nine years, we have engaged governance specialists from a broad range of institutional investors to find out what they are focused on for the upcoming proxy season. This year they told us they want companies to more clearly explain how they are creating long-term value and competitive advantage. They are particularly interested […]

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The Persistent Effect of Initial Success: Evidence from Venture Capital

One of the distinctive features of private equity as an asset class has been long-term persistence in the relative performance of private equity partnerships. Kaplan and Schoar (2005) for example, find correlations of nearly 0.5 between the returns of one fund and the next within a given private equity firm. Among venture capital (VC) funds, […]

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