J&J Rips Derivative Suit Over Ex-CEO's $30M Salary

Law360, New York (November 18, 2013, 7:59 PM EST) -- Johnson & Johnson on Friday pressed a New Jersey federal judge to scrap a shareholder derivative suit accusing the company board of improperly showering an ex-CEO with $30 million in annual pay, asserting that directors had fulfilled their obligations to fully investigate the matter.

Under the state’s so-called modified business judgment rule, such derivative suits are doomed if directors can show they conducted an impartial review of alleged misconduct and reached a reasonable conclusion, according to the brief from J&J.

In this matter, the board commissioned...
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