Tuesday, January 03, 2006

What Directors can expect in the New Year


In 2006 three topics will dominate boardroom discussion: (a) executive compensation, (b) majority voting for election of directors and (c) the relative merits of short-term stock performance and long-term company value in the context of greatly increased pressure from activist shareholders. As a result of Delaware’s affirmation of the business judgment rule in the Disney case last August, there will be less concern regarding personal liability for directors.

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