We examine how boards decide on CEO compensation depending on how informative stock prices are. In order to mitigate the endogeneity of board decisions, we use extreme mutual fund flow-driven trading pressure as an exogenous shock to stock price informativeness. Consistent with informed boards...

We study fund-firm connections that arise when firm executives and directors serve as fund directors. We find that connected funds are significantly more likely to vote with management in proposals with negative ISS recommendations or low shareholder support. As our data shows that management...

We examine whether boards are sufficiently well-informed to make efficient decisions on CEO compensation. In order to mitigate the endogeneity of board decision on CEO compensation, we use mutual fund flow-driven trading pressure as an exogenous shock to stock price informativeness. Consistent...

This article explains what independent fund directors should know about fund litigation. While independent directors were named defendants in prior lawsuits – for example, § 36(b) excessive fee lawsuits – the scope of litigation that followed 2003 was without precedent both in terms of the...

The recent surge in the use of team-managed funds in the mutual fund industry suggests that the benefits of team management might outweigh its costs. However, extant empirical evidence is not consistent with the view that team managed funds generate superior returns relative to individual...

This article explains what independent fund directors should know about fund litigation. While independent directors were named defendants in prior lawsuits - for example, § 36(b) excessive fee lawsuits - the scope of litigation that followed 2003 was without precedent both in terms of the...

In Kissinger & Fellman, PC v. Affiniti Colorado, LLC, the Colorado Court of Appeals determined that EAGLE-Net was a corporation because it had a board of directors and officers – even though never incorporated under the Colorado Business Corporation Act. The Court then proceeded to apply the...

In the aftermath of the 2008 financial crisis, the Federal Deposit Insurance Corporation (FDIC) brought numerous lawsuits against directors and officers of failed banks asserting that they had breached their fiduciary duty of care. Under state corporate law, duty of care claims arise in...