Monday, October 29, 2012

Exec Comp "Armegeddon" for Public Corps

From Melbinger Exec Comp Blog: "Imagine a lawsuit brought in the weeks leading up to your company's annual shareholders' meeting, which seeks to postpone that meeting based on inadequate proxy disclosures on executive compensation matters up for a shareholder vote. Now imagine that the lawsuit is successful – and you are forced to decide between (a) paying the class action lawyers hundreds of thousands of dollars of attorneys' fees and issuing enhanced disclosures or (b) fighting the matter through a preliminary injunction hearing, which may have the effect of delaying your shareholder meeting (and create additional legal fees). Does that sound like Armageddon? Well, it happened earlier this year and the lawyers who brought the lawsuit are seeking to duplicate their success – or achieve a large attorneys' fees award – against other public companies in the current proxy season." Article Here

1 comment:

Tree Removal Whitby said...

Wow - how does a company recover from something like this in the 11th hour. A lawsuit before a shareholders meeting. Guess the exces had a lot of explaining to do!