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

Assumption of Liabilities in Carve-out Transactions

One of the most difficult, and therefore most heavily negotiated, issues in carve-out transactions is the division of liabilities between the parent and the carved-out business. Typically, the division of liabilities will follow the business: liabilities attributable to the parent’s business will be retained by the parent, and liabilities attributable to the subsidiary or division’s […]

Click here to read the complete post
Posted in Mergers & Acquisitions, Practitioner Publications | Tagged , , , | Comments Off on Assumption of Liabilities in Carve-out Transactions

The Role of the Media in Corporate Governance

In an open capital market economy, guided by market signals, firms (and their managers) play an important role in the allocation of capital. Zingales (2000) proposes that the media may also play a role, perhaps positive, perhaps negative, in guiding firms (and their managers) in making capital allocation decisions. Dyck and Zingales (2002) develop this […]

Click here to read the complete post
Posted in Academic Research, Empirical Research, Mergers & Acquisitions | Tagged , , , , | Comments Off on The Role of the Media in Corporate Governance

Court: Private Equity Funds Potentially Liable for Portfolio Company Pensions

In December 2012, we published an Alert after a Federal District Court concluded that: (1) a private equity fund was not a “trade or business” for purposes of determining whether the fund could be liable under the Employee Retirement Income Security Act of 1974 (“ERISA”) for the pension obligations of one of its portfolio companies […]

Click here to read the complete post
Posted in Court Cases, Practitioner Publications, Private Equity | Tagged , , , , , | Comments Off on Court: Private Equity Funds Potentially Liable for Portfolio Company Pensions

“Pay for Investment”: Looking to the Long Term

Today’s post considers what might be done in the design of executive pay to encourage commitment by executives to the longer-term interests of their employers. A very interesting examination into design features in an incentive program that puts emphasis on long-term considerations of executive pay is contained in the proxy statement for Goldman Sachs. (Elements […]

Click here to read the complete post
Posted in Executive Compensation, Practitioner Publications | Tagged , , , , , , | Comments Off on “Pay for Investment”: Looking to the Long Term

Risk Oversight; Effective Board and Committee Leadership

Board oversight of risk and effective board and committee leadership are high priorities for virtually every board of directors. While success in these matters has always been essential to maintaining a high-performing board, how boards approach the risk oversight function and seek to maximize board and committee leadership continues to evolve. Strategic risks can threaten […]

Click here to read the complete post
Posted in Boards of Directors, Practitioner Publications | Tagged , , , , , , , , | Comments Off on Risk Oversight; Effective Board and Committee Leadership

ISS Releases Survey for 2014 Policy Updates

Institutional Shareholder Services (“ISS”), the most influential proxy advisory firm, today launched its annual global policy survey. Each year, ISS solicits comments in connection with its review of its proxy voting policies. At the end of this process, in November 2013, ISS will announce its updated proxy voting policies applicable to 2014 shareholders’ meetings. Results […]

Click here to read the complete post
Posted in Boards of Directors, Corporate Elections & Voting, Practitioner Publications | Tagged , , , , , | Comments Off on ISS Releases Survey for 2014 Policy Updates

Banks and Commodities Trading

On July 19, 2013, Barbara Hagenbaugh, a spokeswoman for the Board of Governors of the Federal Reserve System (Federal Reserve) made the surprising announcement that the Federal Reserve “is reviewing the 2003 determination that certain commodity activities are complementary to financial activities and thus permissible for bank holding companies.” The statement, upon which the Federal […]

Click here to read the complete post
Posted in Banking & Financial Institutions, Financial Regulation, Practitioner Publications | Tagged , , , , , , | Comments Off on Banks and Commodities Trading

Current Thoughts About Activism

A long-term oriented, well-functioning and responsible private sector is the country’s core engine for economic growth, national competitiveness, real innovation and sustained employment. Prudent reinvestment of corporate profits into research and development, capital projects and value-creating initiatives furthers these goals. Yet U.S. companies, including well-run, high-performing companies, increasingly face: pressure to deliver short-term results at […]

Click here to read the complete post
Posted in Boards of Directors, Institutional Investors, Practitioner Publications | Tagged , , , , , , | 1 Comment

Smart Regulation: A Worthy and Achievable Goal

Business Roundtable CEOs, who lead major U.S. companies representing every sector of the economy, understand that well-conceived, science-based regulations are essential to protect human health and safety. Regulations can help ensure that businesses retain the capacity to innovate and simultaneously promote the health and welfare of our employees, customers and communities. But overlapping, conflicting and […]

Click here to read the complete post
Posted in Financial Regulation, Legislative & Regulatory Developments, Practitioner Publications, Securities Regulation | Tagged , , , , , , | Comments Off on Smart Regulation: A Worthy and Achievable Goal

Alternatives to LIBOR

Revelations that bank traders attempted to manipulate LIBOR, the London Interbank Offer Rate, on a widespread and routine basis over the course of many years have rocked the global financial community and fueled international calls for reform. In response, the U.K. Government completely overhauled the governance of LIBOR, adopting in full the recommendations of the […]

Click here to read the complete post
Posted in Academic Research, Banking & Financial Institutions, Financial Regulation, International Corporate Governance & Regulation | Tagged , , , , , , , | Comments Off on Alternatives to LIBOR