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...
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