Activist investors have a large war chest that could see them going on a spending spree, as certain stocks remain highly deflated. How boards manage the Covid-19 response could determine whether they set their sights on the company.
As companies try to return to normal business, they will also have another concern to protect themselves from: Lawsuits. From healthcare, to cruise lines to insurance, most industries will have to deal with an onslaught of litigation from customers, partners and investors.
For many years, director compensation was overshadowed by executive pay. But due to recent litigation, more shareholders and oversight organizations keep a close eye on the decisions made by your compensation committee. Without a clear pay growth strategy, then the company risks financial and public backlash.
The CBOE sought to prevent high frequency traders from profiting off of stale prices by adding a 4-milisecond delay in certain trades within an exchange. The SEC denied the request, potentially slowing the push for similar initiatives.
The healthcare industry has been a fountain of dealmaking lately. Companies wanting to make acquisitions or sell businesses this year should learn from the experts.
Governance always comes into sharp focus when there’s a systemwide breakdown. But a review by Stanford University law professor David Larcker and researcher Brian Tayan suggests that many of the assumptions people make about what constitutes good governance are rarely evidence-based.
BlackRock, the largest asset manager in the world, threw its weight around recently. Chairman and CEO Larry Fink wrote a letter to CEOs in January explaining BlackRock’s further divestment from the fossil fuel industry. He said BlackRock would hold companies and directors accountable when they don’t address sustainability and climate change.
A new disclosure requirement that’s described as the most significant change to the auditor’s report in 70 years is making a difference in the internal controls at large companies, although those looking for scandal so far have been disappointed.
If history is any guide, new audit and accounting requirements such as critical audit matters (CAMs), which went into effect last year, could translate to an increase in fees.
Kison Patel, the CEO of software company DealRoom, remembers working for a private equity firm trying to do a deal not long ago. His firm bombarded the target company with requests for information — including repetitive requests for the same information, often in Excel spreadsheets. Eventually, the seller got fed up and walked away.