Murdochs Dodge $82 Million Suit Over $72 Billion Disney-Fox Deal

Billionaire media mogul Rupert Murdoch and his sons don’t have to face a shareholder challenge to the $82.4 million in bonuses they got when selling Fox’s film and TV assets to Walt Disney Co. for $71.6 billion, a Delaware judge ruled Friday. “The critical deficiency in the complaint is the lack of any factual allegations…

U.S. firms shield CEO pay as pandemic hits workers, investors – Reuters

NEW YORK/BOSTON (Reuters) – Sonic Automotive Inc (SAH.N), which operates 95 U.S. car dealerships, started laying off and furloughing about a third of its workforce as the coronavirus pandemic crushed its sales. Then it changed its executives’ pay packages – handing them a multimillion-dollar windfall. FILE PHOTO: Christopher Nassetta, the President and CEO of Hilton,…

Sketchers Settles Lawsuit By Canceling Stock Awards

A Delaware shareholder derivative suit against Sketchers is being settled as the company agrees to cancel $20 million in equity awards issued to founder Robert Greenberg and two top officers in 2019 and 2020. The lawsuit alleged breaches of fiduciary duty, unjust enrichment, and corporate waste for these and other awards as well. The shareholders…

Agency Conflicts and Short- vs Long-Termism in Corporate Policies

The paper demonstrates that the optimal incentive contract generates short- or long-termism in corporate policies, defined as short- or long-term investment levels above the levels attainable in the absence of agency frictions. In other words, short- or long-termism can be an optimal response to the dual agency problem over the short and long run. Long-termism…

Proxy adviser ISS recommends vote ‘against’ executive pay at Alphabet – Reuters

Institutional Shareholder Services (ISS) has recommended shareholders of Google-parent Alphabet Inc to vote “against” the company’s proposed executive pay at its annual meet in June, according to a report seen by Reuters on Thursday. “The compensation committee has demonstrated poor stewardship of pay programs as evidenced by recurring concerns of outsized awards that are not…