Coming up on Wednesday, November 13th is the next episode in our “Comp Talks” series, during which Cooley’s Scott McCall and Pete Adams – with Ali Murata moderating – will discuss recent developments in mega grant equity compensation awards given to controlling shareholder executives – and the corporate governance matters that have arisen and continue to arise as a result. Register now.
Here are four practice pointers from Scott to get you started:
- Continue to be Granted – Despite bad press, general dislike from ISS and Glass Lewis, and failed outcomes, companies continue to grant moonshot (otherwise known as “mega”) equity awards.
- Planning and Disclosures are Critical – Design, disclosure, and communication are key to boosting odds of overcoming proxy advisor disfavor towards these types awards.
- Process is Key – Getting the right inputs and approvals from the right group of people at the right time can be the difference between success and failure.
- Shareholder Litigation – Understand and be aware of the shareholder litigation landscape and when a heightened standard of review will apply, and how early process and preparation can make the difference between a win and a loss.
Authored by
Broc Romanek