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

Corporate Governance at Silicon Valley Companies

As counsel to a wide range of public companies in the high technology and life science industries, primarily based in Silicon Valley and Seattle, Fenwick has collected information on the corporate governance practices of publicly traded companies in order to counsel our clients on best practices and industry norms in corporate governance. We have collected […]

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Posted in Boards of Directors, Comparative Corporate Governance & Regulation, Practitioner Publications | Tagged , , , , | Comments Off on Corporate Governance at Silicon Valley Companies

Do Firms Manipulate Their Stock Prices? Causal Evidence from M&A

Editor’s Note: The following post comes to us from Kenneth Ahern and Denis Sosyura, both of the Department of Finance at the University of Michigan. In the paper, Who Writes the News? Corporate Press Releases During Merger Negotiations, which was recently made publicly available on SSRN, we show that firms manipulate their stock prices during […]

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Posted in Academic Research, Empirical Research, Mergers & Acquisitions | Tagged , , , , | 1 Comment

Morrison’s Impact on Institutional Investors

American securities law is at an important crossroads, and the direction it takes will affect investors well into the future. For decades, federal securities law protected U.S. domiciled and citizen investors against fraud affecting the securities they purchased, even if purchased on foreign markets. Under the longstanding conduct and effects tests, the antifraud provisions of […]

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Posted in Court Cases, Institutional Investors, Practitioner Publications, Securities Litigation & Enforcement, Securities Regulation | Tagged , , , , | 2 Comments

Post-Crisis Trends in U.S. Executive Pay

Though the global financial crisis of 2008 prompted a seismic shift in attitudes toward executive pay on the part of lawmakers, the public, investors, and other stakeholders, average compensation levels continue to rise or have returned to where they were before the crisis. Mindful of the outcry over particular elements of pay packages, companies began […]

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Posted in Executive Compensation, Financial Crisis, Practitioner Publications | Tagged , , , , , | 1 Comment

Investing for the Long Run

Editor’s Note: The following post comes to us from Andrew Ang, Ann F. Kaplan Professor of Business at Columbia Business School, and Knut Kjaer, former founding CEO of the Norwegian sovereign wealth fund. Long-horizon investors have an edge. Sadly, they too often squander their advantages. That is often caused by shortcomings in their own governance […]

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Examining the Largest Golden Parachutes

After Jack Welch retired from General Electric it wasn’t until a divorce settlement forced the disclosure of his retirement benefits package that anyone took any notice. At that time, the scandal surrounding Mr. Welch was that his perquisites were valued at $2.5 million a year, and included luxuries such as the use of an $80,000-per-month […]

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Posted in Executive Compensation, Practitioner Publications | Tagged , , , | 1 Comment

SEC Dismissal of “Failure to Supervise” Proceeding

In a significant case for legal and compliance professionals at securities firms, the Securities and Exchange Commission (the “Commission”) recently dismissed enforcement proceedings against Theodore W. Urban, former General Counsel of Ferris, Baker Watts, Inc. (“FBW”). [1] The dismissal of the proceedings, by an evenly divided Commission, rendered “of no effect” a prior administrative law […]

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Registration of Investment Advisory Affiliates

On Jan, 18, 2012, the SEC’s Division of Investment Management issued a no-action letter [1] permitting registered advisers to private funds (“filing advisers”) to include general partners and similar SPVs of their affiliated funds on the filing adviser’s Form ADV. In addition, U.S. filing advisers who have affiliated investment advisory firms which are controlled by, […]

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It Pays to Follow the Leader

Financial bidders like private equity firms often compete with corporate bidders for the same target. Over the last 27 years, financial sponsors made 23 percent of all competing bids. In our paper, It Pays to Follow the Leader: Acquiring Targets Picked by Private Equity, forthcoming in the Journal of Financial and Quantitative Analysis, we examine […]

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Posted in Academic Research, Mergers & Acquisitions, Private Equity | Tagged , , | 1 Comment

Transforming Executive Pay in the UK

The Business Secretary of the British government (“Government”), Vince Cable, recently announced a package of controversial plans in a bid to transform UK executive pay culture [1]. Under a new-four-pronged approach, shareholders would for the first time be given a binding vote on executive pay packages. Executive boards may also need to become more diverse […]

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Posted in Executive Compensation, International Corporate Governance & Regulation, Legislative & Regulatory Developments, Practitioner Publications | Tagged , , , , | 1 Comment