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

The Executive Turnover Risk Premium

In our forthcoming Journal of Finance paper, The Executive Turnover Risk Premium, we make the simple point that forced turnover risk explains an important part of the cross-sectional variation of compensation for the CEOs of public U.S. corporations. The empirical magnitude of the turnover risk premium—about 7% greater subjective compensation for a one percentage point […]

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How America’s Participation in International Financial Reporting Standards Was Lost

The modern quest for an “Esperanto” of business has been underway for nearly half a century. And though it was initiated by the United States, after 48 years, it has yet to gain our full support. That is unfortunate, because the promise of a global standard is truly dazzling. An international language of disclosure and […]

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Proposed Dodd-Frank Concentration Limit on Financial Institution M&A Transactions

In May 2014, the Federal Reserve issued a proposal that would implement the financial sector concentration limit set forth in Section 622 of the Dodd-Frank Act. The proposal reflects the Financial Stability Oversight Council’s January 2011 Study and Recommendations Regarding Concentration Limits on Large Financial Companies. The concentration limit generally prohibits a financial company from […]

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Posted in Banking & Financial Institutions, Financial Regulation, Legislative & Regulatory Developments, Mergers & Acquisitions, Practitioner Publications | Tagged , , , , | Comments Off on Proposed Dodd-Frank Concentration Limit on Financial Institution M&A Transactions

Enhancing Our Equity Market Structure

It is great to be here with you in New York to speak about our equity market structure and how we can enhance it. While I know your views on particular issues may differ, you all certainly appreciate that investors and public companies benefit greatly from robust and resilient equity markets. During my first year […]

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Best Practice Principles for Proxy Advisors and Chairman’s Report

Regulation of proxy advisers is a widely discussed subject matter worldwide. The European Securities and Markets Authority (ESMA), the regulator responsible for enforcing European securities regulation, declared in its ESMA Final Report and Feedback Statement on the Consultation Regarding the Role of the Proxy Advisory Industry in February 2013, to favor a self-regulatory approach over […]

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The Elusive Promise of Reducing Shareholder Litigation Through Corporate Bylaws

Corporations today are routinely subject to expensive shareholder litigation for which shareholders ultimately foot the bill. Even weak shareholder claims pose significant costs and uncertainty, and exert significant settlement pressures, on corporations. Several recent state court decisions, however, underscore the potential for corporate bylaws, including those adopted by boards, to reduce incentives for the plaintiffs’ […]

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The Credit Suisse Guilty Plea: Implications for Companies in the Crosshairs

The announcement of the Credit Suisse guilty plea on May 19, 2014 marks the first time in more than a decade that a large financial institution has been convicted of a financial crime in the United States. For this reason alone, some will herald it a watershed moment in the history of corporate criminal liability. […]

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Board Challenges: The Question of CEO Succession

The World Affairs Council of Atlanta’s 2013 Global Strategic Leadership Forum focused on a critical issue facing boards of directors: CEO succession. As arguably its most crucial responsibility, the board’s process for hiring and developing CEOs must be an extraordinarily thorough one that addresses the complexities of the modern global company. While there is no […]

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Shareholder Activism in Germany

Over the past few years there has been a noticeable increase in the frequency of activist investors building up considerable stakes in German listed companies in the context of public takeovers. One reason for this development is what appears to be a new business model of hedge funds—the realization of profits through litigation after the […]

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Posted in International Corporate Governance & Regulation, Mergers & Acquisitions, Practitioner Publications, Private Equity | Tagged , , , , , , , , , , | Comments Off on Shareholder Activism in Germany

Second Circuit Vacates Rejection of Settlement in the Citigroup Case

The United States Court of Appeals for the Second Circuit issued its long-awaited decision today on the appeal from Judge Jed S. Rakoff’s rejection in 2011 of the consent settlement in United States Securities and Exchange Commission v. Citigroup Global Markets Inc. The Court of Appeals vacated the district court’s order, holding that the lower […]

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