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Director Compensation: Litigation & Other Risk Mitigation

By Randi Morrison posted 09-18-2018 08:40 PM

  

In this recent memo: "Director Compensation in the Spotlight," Morgan Lewis suggests several sound actions steps for companies to mitigate the likelihood of, and the risks associated with, director compensation litigation. Recommendations/considerations include benchmarking compensation against an appropriate peer group with input from a compensation consultant, stock ownership & holding requirements, discontinuing perks, robust proxy disclosure, and equity award limits.

          See also our prior reports on director pay litigation: "Director Compensation Design Considerations," "Director Compensation: What to Do Now," "Director Compensation: Equity Limits Become the Norm," "Director Compensation: Del. Supreme Court Establishes New Threshold for BJR," "Director Compensation Litigation Trends: Protective Measures," "Director Compensation Trends," "Mitigating the Potential for Director Compensation Litigation" and "Director Compensation: Mitigating the Potential for Shareholder Litigation" in Executive & Director pay, and on ISS's director pay policy: "Prepare Now for ISS's New Director Pay Policy," "ISS Launches Annual Policy Survey for 2019 Proxy Season," and "ISS Policy on "Excessive" Director Compensation: Next Steps."  This post first appeared in last week's Society Alert!

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