Proxy Season Brings More 'Gotcha' Shareholder Litigation
February 28, 2013, 11:26 AM EST
Law360, New York (February 28, 2013, 11:26 AM EST) -- Since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21, 2010, which requires a say-on-pay advisory vote on executive compensation, the plaintiffs’ securities bar has been busy filing lawsuits and issuing press releases “investigating” companies concerning say-on-pay votes and/or executive compensation matters.
There have been two distinct waves of shareholder litigation over the past couple of years. Now, there has been a third one consisting of derivative shareholder suits alleging that companies approved executive compensation in violation of stock plans....