May 12, 2016
Lawsuits Over Director Pay Plans On the Rise
– Broc Romanek, CompensationStandards.com
Here’s the intro from this Bloomberg article:
There has been an uptick in shareholder lawsuits targeting director compensation, putting companies on notice that investors are closely scrutinizing how boards set their own pay. According to a March 28 National Association of Corporate Directors report, there has been a significant amount of litigation over director pay over the last 18 months. “After simmering on the back burner for several years, the issue of director pay administration and governance has been or soon will be appearing on the radar screen at most companies due to various court cases and lawsuits,” said the report, authored by compensation consultant Pearl Meyer.
Companies that are litigating actions over their director pay packages include Chipotle Mexican Grill Inc. and Goldman Sachs Group Inc.