NEW: Paying by Donating: Corporate Donations Affiliated with Independent Directors examines the effect of corporate donations to independent directors’ affiliated charities, finding evidence that CEOs are more highly compensated and less likely to be replaced for poor performance when firms donate to director-affiliated charities.
Cleary Gottlieb discusses the law regarding director independence and the use of special committees where a board’s decisions may be tainted by a perceived or potential conflict of interest. Update on Director Independence.
[$$$] Morris James discusses recent Delaware Court of Chancery decisions evaluating director independence when examining whether a demand on the board of directors would have been futile. Recent Cases Emphasize the Holistic Evaluation of Director Independence in the Demand Futility Context.