3 Takeaways From Nasdaq's New 'Golden Leash' Rule

Law360, New York (July 29, 2016, 7:15 PM EDT) -- Hoping to shed light on the tactics of "activist investor" campaigns, Nasdaq is now requiring listed companies to annually disclose compensation that directors or nominees receive from third parties in connection with their service on the corporations' boards of directors.

Nasdaq says the so-called golden leash rule, which takes effect Monday following earlier U.S. Securities and Exchange Commission approval, will boost transparency so investors can make informed votes about the candidacies of sitting directors or nominees backed by large shareholders seeking to assert control of a company believed to be underperforming.

The nominees can receive compensation from the activist, often a...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!