I found Emilie Feldman’s research intriguing. She suggests that Director incentives might only be effective when combined with “expertise”. Emilie labeled non-expert outside directors “significant ownership, low expertise” (a/k/a “SOLE”), and uses the following criteria to define SOLE directors: 1. Not the founder of a FORTUNE 500 company 2. Not the current or retired CEO or chairman of a Fortune 500 company 3. Not a director of more than one Fortune 500 company 4. Owns shareholdings of at least 0.1% My conclusions: 1. There is no question in my mind that expertise as a CEO, Chairman, and service on multiple Boards is a … Continue reading #AlignedValue: Is there #NoSubstitute for expertise on FORTUNE 500 boards?
Decision On Wednesday, December 10th 2014, in the case United States v. Newman and Chaisson, the United States Court of Appeals 2nd circuit made a controversial decision to reverse the convictions and indictments against Newman and Chaisson. The court document states: “….we hold that the evidence was insufficient to sustain a guilty verdict against Newman and Chiasson for two reasons. First, the Government’s evidence of any personal benefit received by the alleged insiders was insufficient to establish the tipper liability from which defendants’ purported tippee liability would derive. Second, even assuming that the scant evidence offered on the issue of personal benefit was sufficient, which we conclude … Continue reading #AlignedValue Commentary: Impetus for New #InsiderTrading Governance & Regulations #DBConf
Commentary from Martin Schroeter, CFO of IBM (quoted) Analysis by Ryan Hunter (italicized) Note: Mr. Schroeter’s commentary was prompted in part by coverage and commentary from @andrewrsorkin on @CNBC “There has been a growing debate about whether companies should: 1. Reinvest for growth or 2. Return capital to shareholders …with the assertion that one precludes the other. It is a false choice, as demonstrated year in and year out by companies with sustainable models.” Counterpoint This is a fundamental trade-off companies must judiciously contemplate in order to grow their business; and serve their shareholders. Opinions regarding which is option is “right” are … Continue reading Corporate #Stewardship Decisions // Reinvest Capital or Return to Shareholders? // #CEO & #CFO’s Choose Wisely