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SEC and Regulatory

 

CD&A: The Second Time Around

June 1,2008 by Joseph McCafferty
Increasingly detailed executive pay disclosures haven’t led to across-the-board cuts in CEO pay. Instead, boards are using new disclosure rules to demonstrate how executive compensation plans are tied to shareholder value. Full Story

Fixing the Rating Game

June 1,2008 by Aaron Bernstein
The SEC may not take up controversial issues like shareholder access to the proxy this year, but boards can expect action on other topics, including credit-rating agencies. Full Story

Henry Paulson: Man With a Plan

June 1,2008
There will be no quick fixes to the current credit crisis, nor will the framework for improving regulatory structures be built overnight. Speaking before the spring gathering of the Council of Institutional Investors in April just weeks after the formal introduction of a controversial blueprint for modernizing the financial regulatory structure, U.S. Treasury Secretary Henry M. Paulson Jr. outlined the vast challenges that lie ahead. Full Story

Here Come the Regulators

June 1,2008 by Kirke Hasson and Ernie Patrikis
The fallout from the subprime and credit crisis continues to highlight imperfections in our banking and finance system. A bright light is now being shined on the patchwork of regulatory bodies, often with overlapping jurisdictions and prerogatives, tasked with overseeing financial and banking entities. Full Story

State Litigation Guide

June 1,2008 by Steven B. Hantler
Commentators taking note of the recent felony convictions of several high-profile plaintiffs’ lawyers, including Bill Lerach and Melvyn Weiss, have declared that the tort reform battle is over and the corporate defenders have won. Nothing could be further from the truth. While a few big guys may be cooling their heels in jail, it’s still not safe to tread in America’s litigation waters. Full Story

Who Sank Bear Stearns?

June 1,2008
Did unfounded rumors contribute to the run on Bear Stearns that pushed the country’s once fourth-largest investment bank to the brink of collapsing? Full Story

Executive Pay: What Really Makes Sense

April 1,2008 by Pearl Meyer
The drive by regulators, institutional shareholders, activists, and the media to reduce perceived executive-pay abuse is following a path that could have serious unintended consequences, limiting the exercise of business judgment by directors in their determinations. Full Story

No Lame-Duck Status for SEC

April 1,2008
The Securities and Exchange Commission might be down to only three commissioners of its normal panel of five, but that doesn’t mean it isn’t busy. Recent actions will affect this season’s proxies and naked short sellers. But it is an old rule, Reg FD, that is getting the attention of directors. Full Story

Postings: April / May 2008

April 1,2008
Recent board appointments: Zelnick, Breeden, Sheehan, more. Full Story

The Ex-Men

February 1,2008
Former Securities and Exchange Commission chairmen are a little like ex-presidents: they generally leave public office to pursue endeavors outside the shadow cast by their former role, they are occasionally asked to weigh in on issues of the day, and they generally refrain from heaping too much criticism on each other or the current administration. In December, at the Directorship Institute, an annual gathering of directors and corporate-governance experts, three former SEC chairmen—Richard Breeden, Harvey Pitt, and William Donaldson—let down their guard a little and engaged in a friendly debate on the current regulatory environment. Full Story

The Litigation Storm

February 1,2008 by Judy Warner
Boards were just beginning to bask in the milder securities class-action litigation climate. After record numbers of suits in the early part of the decade, the number of cases was dwindling to the point that directors wondered if a permanent change had occurred. There were numerous reasons for such optimism. Full Story

Finding New Value in Internal Audit

December 1,2007 by Michael J. Nolan and Edward F. Smith
Many audit committees are ratcheting up their expectations for the internal audit function. In fact, a recent ACI/NACD survey found that only 46 percent of audit committee members were very satisfied with the effectiveness of their company’s internal audit function. Full Story

Inside the SEC's Rule-Making Apparatus

December 1,2007 by Matt Perkins
This past summer, the Securities and Exchange Commission proposed two rules on shareholder proxy access with opposing aims: One provides for greater access to ballots, while the other upholds the status quo of restricting access. Together, the initiatives received more than 34,000 comment letters. Full Story

Reviving the Attorney-Client Privilege

December 1,2007 by Michael R. Bromwich
Once upon a time, federal law enforcement agencies investigated allegations of corporate criminal activity using their own powers, authorities, and investigative techniques. Companies that were subject to federal criminal investigations relied on their in-house and outside counsel to defend them vigorously. Full Story

The Case for Global D&O Insurance

December 1,2007 by Deborah Cotton, Michael Goldman, Patrick Harrison and James Pinkstaff
In the constantly changing area of directors and officers (D&O) liability, significant D&O exposures are no longer limited to U.S. regulatory and legal actions. Full Story

Toward Global Bookkeeping

December 1,2007 by Aaron Bernstein
A Securities and Exchange Commission (SEC) plan, passed unanimously last month, to allow foreign companies listed in the United States to stop reconciling their financial statements to U.S. accounting standards is getting panned by investors. Full Story

SEC on Pay Disclosure: 'Try Again'

October 1,2007
In late August, the Securities and Exchange Commission sent comment letters to more than 300 companies offering an opinion on how they complied with the new compensation discussion and analysis (CD&A) rules that went into effect earlier in the year. The gist of the SEC’s comments? “We’re not happy.” Full Story

The 2008 Proxy Season

October 1,2007 by Patrick McGurn
It is not easy to prognosticate on the 2008 Proxy Season and the future direction of corporate governance. For a little help, I recently turned to a renowned, 60-something-year-old pundit—the Magic 8 Ball. Full Story

The Battle Brewing Over Director Elections

October 1,2007 by Aaron Bernstein
The corporate-governance battle looming over Washington this fall revolves around the issue of proxy access. Last July, the Securities and Exchange Commission made good on a pledge by Chairman Christopher Cox to address shareholder demands for greater access to proxy ballots. But the two proposals voted on by the divided commission flatly contradict each other. Full Story

The Return of the Tender Offer

October 1,2007 by Mark Gordon
Unused in friendly transactions for many years, the tender offer has returned as a viable—and in many cases superior—alternative to the single-step merger for strategic and private-equity acquisition structures. Indeed, the first six months of 2007 have seen at least 29 tender offers for U.S. targets with a market cap in excess of $200 million, compared with just 5 for the same period in 2006. Full Story

What the Beltway Has in Store

September 1,2007 by Joseph McCafferty
A preview of the regulatory agenda over the next 12 months. Full Story

SEC Proxy Review: What's Next for CD&A

August 24,2007
As part of its first phase of review of executive and director compensation disclosure in 2007 proxies, the SEC Corporate Finance Staff began sending its first wave of comment letters to certain targeted companies earlier this week. Here is what the SEC is reviewing: Full Story

Barney Frank's Grand Bargain

April 1,2007 by
The outspoken champion of the working class wants to compromise with Corporate America. A close look at Frank suggests he will take a measured approach to leading Financial Services. Acquaintances say that, ultimately, his steel trap of a mind always reins in his emotions. Full Story

Drumbeats on CEO pay

April 1,2007 by Directorship Editors
True to predictions, the new Democratic-controlled Congress is moving toward reining in executive compensation. The House Financial Services Committee, headed by U.S. Rep. Barney Frank is looking to revise a failed 2005 bill that would have required shareholders to approve pay packages for top executives. Full Story

Why J-Sox is Not Sarbanes-Oxley

December 1,2006 by Toshio Aritake
It's comparable in some ways to the American Sarbanes- Oxley Act and is the first comprehensive set of governance rules to be mandated in Japan. Full Story

Skilling's Sentence: How To React?

December 1,2006 by Directorship Editors
The harsh decision sends a message: The bad guys should suffer, and the good guys should speak up for themselves. Full Story

Declaring War On Lawsuit Abuse

November 1,2006 by Directorship Editors
The American Justice Partnership fights for tort reform, state by state. Full Story

The First Thing We Do, Let's Fire Some Lawyers

November 1,2006 by James C. Woolery
An overload of specialist attorneys is balkanizing the American boardroom. Full Story

The Right Way To Hire An Investigator

November 1,2006 by Warren De Weid and Steven Witzel
The recent furor at Hewlett-Packard has focused attention on public companies' use of private investigators Full Story
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