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Program on Corporate Governance Advisory Board
- Peter Atkins
- David Bell
- Kerry E. Berchem
- Richard Brand
- Daniel Burch
- Paul Choi
- Jesse Cohn
- Arthur B. Crozier
- Renata J. Ferrari
- Andrew Freedman
- Ray Garcia
- Joseph Hall
- Jason M. Halper William P. Mills
- David Millstone
- Theodore Mirvis
- Philip Richter
- Elina Tetelbaum
- Sebastian Tiller
- Marc Trevino
- Steven J. Williams
Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation
Madoff – Could it Have Happened in the UK?
This post outlines what the alleged Madoff fraud involved and how it was able to happen. It looks at relevant aspects of the US regulatory system and draws attention to some similarities in the UK system. The Madoff debacle Bernard Madoff’s alleged Ponzi scheme is reported to have cost clients $50bn. His business was run […]
Click here to read the complete postAreas for Enhanced Board Focus
Recent events in the financial markets and the ensuing economic turmoil has shattered the trust of investors, regulators and Main Street in financial institutions and the capital markets on a global scale. The crisis has heightened focus on the importance of risk management at all corporations and has encouraged a fresh look at the role […]
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Posted in Accounting & Disclosure, Boards of Directors, Practitioner Publications
Tagged Board leadership, Boards of Directors, Compliance & ethics, In re Caremark, Risk, Risk management
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Risk and The Chief Legal Officer: Expanding Exposure
My firm has prepared a memo entitled “Risk and The Chief Legal Officer: Expanding Exposure,” which addresses what we believe is expanding exposure facing Chief Legal Offices (CLOs) of US public companies. The first two sections briefly address the two key underpinnings of this phenomenon: (1) increasing focus on the CLO as a central player […]
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Posted in Boards of Directors, Practitioner Publications, Securities Regulation
Tagged CLOs, Risk, Risk management
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Executive Compensation: What Obama’s Plan Means
Editor’s Note: This article was recently published by the author, Ben Heineman, in Business Week. Mr. Heineman is General Electric’s former senior vice-president for law and public affairs, and is author of “High Performance with High Integrity”. The Administration’s attempt to deal with excessive pay is more about procedure than substance and will allow most […]
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Posted in Executive Compensation, Legislative & Regulatory Developments, Op-Eds & Opinions
Tagged Executive Compensation, Say on pay, TARP
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Back to Purchasing Troubled Assets
Editor’s Note: This post is by Lucian Bebchuk of Harvard Law School. The plan proposed by Treasury Secretary Paulson last September focused on the government’s purchasing “troubled assets” from banks and other financial institutions. Critics (including myself) stressed the huge difficulties that would be involved in the government’s placing a value on troubled assets and […]
Click here to read the complete postMoral Hazard and Managerial Compensation
In our recently accepted American Economic Review paper entitled Has Moral Hazard Become a More Important Factor in Managerial Compensation? we estimate a model of moral hazard with data spanning a sixty-year period in order to investigate how well two specific channels explain secular changes in managerial compensation and to assess their relative importance. First, […]
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Posted in Academic Research, Empirical Research, Executive Compensation
Tagged Executive Compensation, Moral hazard, Welfare cost
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More on the Administration’s Compensation Guidelines
Related to the recent op-ed piece from Professor Bebchuk regarding the new Treasury executive guidelines, here are key fixes to those new guidelines recommended by Jesse Brill, Chair of CompensationStandards.com: One key aspect of the Obama Adminstration’s new $500,000 cap that has not gotten sufficient attention is the unlimited amount of restricted stock and stock […]
Click here to read the complete postReactions to Bebchuk on the Administration’s Compensation Guidelines
In response to Lucian Bebchuk’s post from yesterday, Bernard Sharfman writes: I also agree that the proposed salary caps are mainly symbolic. In 2008, Wall Street paid out $18.4 billion in bonuses to its approximately 164K plus employees. Based on this data and the limited number of firms and number of employees (5 per firm) […]
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Posted in Boards of Directors, Executive Compensation, Practitioner Publications, Securities Regulation
Tagged Compensation guidelines
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The Administration’s Executive Pay Guidelines
Editor’s Note: This post is based on an op-ed piece by Lucian Bebchuk in today’s Wall Street Journal. Critics of the administration’s proposed guidelines on executive compensation say they are a dangerous intrusion into corporate boards’ authority and would make it difficult for financial firms to fill executive positions. These criticisms are unwarranted. If anything, […]
Click here to read the complete postSEC vs. Mark Cuban
I have recently filed an amicus brief on behalf of myself and Professor Bainbridge of the UCLA Law School, Professor Jonathan Macey of Yale Law School, Professor Alan Bromberg of SMU Law School and Professor Henderson of the University of Chicago Law School in the litigation filed against Mark Cuban by the SEC in the […]
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