From Sidley Austin: As the COVID-19 pandemic began to unfold in the US in early March, it quickly became clear that the crisis would act as a “poison pill” that would sharply reduce shareholder activism in the spring. Initially, many activists were preoccupied with their own survival and/ or attracting new capital rather than launching…
Category: COVID-19
Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine – The New York Times
Yet another reason insiders should not be allowed to sell stock until 3-5 years after leaving the company. And yet another reason that boards of directors should be more careful in setting incentive compensation benchmarks to avoid short-term profit-taking. They are making millions of dollars after announcing positive developments, including support from the government, in…
Two senators demand answers from Wells Fargo following NBC News reports
Citing a recent investigation by NBC News, two U.S. senators have asked the chief executive of Wells Fargo to answer extensive questions about the bank’s practice of pausing mortgage payments for borrowers without their consent under a federal program designed to help homeowners financially hurt by COVID-19. The senators, Elizabeth Warren of Massachusetts and Brian…
Moderna executives sell stock as coronavirus vaccine boosts company shares – The Washington Post
VEA Vice Chair Nell Minow is quoted in this Washington Post story about executive stock sales at a biotech firm working on a COVID-19 vaccine. As shares of biotech firm Moderna soared in May to record highs on news that its novel coronavirus vaccine showed promise in a clinical trial, the nation’s senior securities regulator…
SEC: The Importance of Disclosure – For Investors, Markets and Our Fight Against COVID-19
Our collective national effort to mitigate the COVID-19 pandemic has caused a deep contraction in vast areas of our economy, with many workers and businesses facing profound challenges. There is broad support for this national, full-mitigation response to COVID-19, but also broad recognition that our strategy must evolve to effectively address the health risks of…
COVID-19 Places Corporate Social Responsibility in Sharp Relief | Insights | Sidley Austin LLP
From Holly Gregory: The COVID pandemic really reminds us that corporations are sort of central to our well-being. They get the groceries on the shelf, they manufacture the toilet paper, they deliver health care and manufacture PPE, and innovate, develop vaccines. So, they really are innovators to help solve problems, make sure we have the…
So, Maybe Not So Much on the Stakeholder Commitment
Senate Majority Leader Mitch McConnell—following a lobbying offensive by the U.S. Chamber of Commerce—recently announced that Senate Republicans’ top COVID-19 response priority is sweeping corporate immunity legislation that would make it nearly impossible to sue corporations for COVID-19-related legal claims by workers, consumers, or patients. Corporate immunity could give employers a free pass to flout worker…
HMRC confirms furlough scheme won’t cover dividends – Citywire
The government’s coronavirus Job Retention Scheme will not cover dividends, HM Revenue and Customs (HMRC) has confirmed. Speaking to the Treasury committee today, Jim Harra, chief executive at HMRC, said dividends ‘will not qualify’ in the furlough scheme and company directors will only be able to claim 80% of their salaried wage. According to a…
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,…
The Trump Administration Has Abandoned Worker Safety at the Worst Moment | The New Republic
There is no possible justification for loosening safety rules just at the very moment they are most needed. As “essential workers” labor under dangerous conditions through the coronavirus pandemic, they might be curious to learn that the terms of their employment are in technical violation of federal law. For half a century now, it’s been…
ValueEdge Advisors 