Earlier this month, in In re Investors Bancorp, Inc. Stockholders Litigation, the Delaware Court of Chancery reiterated its view that placing a meaningful limit on director equity awards to be granted under a stockholder approved equity plan allows the court to determine whether director equity awards are excessive under the more lenient business judgment rule.
My colleagues Jen Rubin and Rich Kelly co-authored an article recently published in Corporate Board Member magazine in which they outline principles and proven techniques to help board members navigate a fast-moving CEO termination. The article emphasizes preparedness for this type of transition and cites steps such as understanding the board’s role, managing legal relationships, informing the board, and following proper corporate procedures. Read the full article here.