By 2007, executive compensation at U.S. companies had become an extremely contentious topic. Reports in the press of multi-million dollar pay packages - in the form of stock option exercises, severance packages, and retirement payouts - led to an outcry among many investors that compensation...

In 2003, the board of directors of GDF decided to initiate a thorough search process to replace its existing CEO. GDF Corp was a leader in the telecommunications industry, offering network equipment and enterprise solutions to a broad range of customers around the world. The company's business...

By 2007, Gretchen Morgenson, assistant editor and columnist at The New York Times, had gained significant attention from business leaders, regulators, and academics for her coverage of a wide range of financial and governance issues. Morgenson wrote the majority of her articles about corporate...

In 2006, David Zucker, chief executive officer of Midway Games, came under fire for selling a significant amount of Midway stock just weeks before a precipitous decline in the company's share price. One year later, Angelo Mozilo, chairman and chief executive officer of Countrywide Financial,...

In 2007, Institutional Shareholder Services (ISS) was the largest proxy advisory company in the world, with over 1,700 institutional clients managing an estimated $25 trillion in equity securities. The ISS proxy advisory services were intended to give shareholders greater influence over the...

In 2005, Relational Investors, a registered investment advisor, launched a proxy contest to gain two seats on the board of directors of Sovereign Bancorp. Relational accused Sovereign of operational mismanagement and poor corporate governance, representing a breach in fiduciary responsibility by...

Following the revelation that the Royal Dutch/Shell Group of Companies had overstated its proved oil reserves by over 4 billion barrels, company officials announced dramatic changes to the company's organizational structure and governance system. These changes were intended to improve management...

Proxy advisory firms are highly influential in the design and approval of equity compensation plans. The largest proxy advisory firm — Institutional Shareholder Services — uses a variety of tests to determine its recommendation on equity plan proposals. Among these is a proprietary metric...

There are at least three potential ways in which a CEO divorce might impact a corporation and its shareholders. First, it might reduce the executive's control or influence over the organization. Second, it might affect his or her productivity, concentration, and energy levels. Third, it can...

On March 5, biotechnology company Chimerix refused to provide a potentially life-saving drug to 7-year old Josh Hardy who was battling cancer. The drug had not yet received FDA approval, and the company had discontinued its "compassionate use" program to dedicate resources to Phase 3 testing of...