Corporate Litigation: Stockholder Challenges to Executive Compensation
In their monthly Corporate Litigation column published in the New York Law Journal, Litigation Partner Joe McLaughlin and Associate Shannon McGovern discuss recent guidance from the Delaware Supreme Court clarifying the limits of the stockholder ratification defense in litigation challenging director compensation awarded under the parameters of a stockholder-approved compensation plan. Discussing the Investors Bancorp decision, the article suggests company boards and advisers should consider assessing director equity compensation plans and review how those plans are disclosed in proxy statements.