Laura A. McIntosh

The SEC’s Regulation of ESG Disclosures

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The U.S. Securities and Exchange Commission has indicated that ESG disclosure regulation will be a central focus of recently confirmed SEC Chair Gary Gensler’s tenure. At the top of the agenda is climate change disclosure, and the Commission is taking steps toward broader reform. Then-Acting Chair Allison Herren Lee announced in March that the SEC will be “working toward a comprehensive ESG disclosure framework” and pursuing initiatives such as “offering guidance on human capital disclosure to encourage the reporting of specific metrics like workforce diversity, and considering more specific guidance or rule making on board diversity.” Acting Chair Lee also … Read more

Wachtell Lipton Discusses Gender Diversity and Board Quotas

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California has made headlines this summer with legislative action toward instituting gender quotas for boards of directors of public companies headquartered in the state.  The legislation has passed the state senate; to be enacted, it must be passed by the California state assembly and signed by the governor.  In 2013, California became the first state to pass a precatory resolution promoting gender diversity on public company boards, and five other states have since followed suit.  The current legislative effort has come under criticism for a variety of reasons, and, while it is not certain to become law, it could be … Read more

Wachtell Lipton Discusses the Pros and Cons of Directors’ Notes

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“To take notes or not to take notes – that is the question” often asked in corporate board rooms today. As a matter of good governance, it is important that the minutes serve as the single, clear, official record of each in-person or telephonic board and committee meeting. Board materials that are circulated and discussed at the meeting should be part of the official record and either attached to the minutes or maintained in the corporate secretary’s files, as appropriate. In connection with significant transactions, board minutes will be reviewed by third parties for diligence purposes and to confirm that … Read more

Wachtell Lipton provides a Corporate Governance Update: Dealing with Director Compensation

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Due to a recent Delaware Chancery Court ruling,[1] the topic of director compensation currently is facing an uncharacteristic turn in the spotlight. Though it receives relatively little attention compared to its higher-profile cousin—executive compensation— director compensation can be a difficult issue for boards if not handled thoughtfully. Determining the appropriate form and amount of compensation for non-employee directors is no simple task, and board decisions in this area are subject to careful scrutiny by shareholders and courts.

The core principle of good governance in director compensation remains unchanged: Corporate directors should be paid fair and reasonable compensation, in a mix

… Read more

Can You Resign from the Board of a Troubled Company?

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The following post comes to us from David A. Katz, a partner at Wachtell, Lipton, Rosen & Katz, and  Laura A. McIntosh, a consulting attorney for the firm.  The views expressed are the authors’ and do not necessarily represent the views of the partners of Wachtell, Lipton, Rosen & Katz or the firm as a whole.   This article is also being published today in the New York Law Journal.

Two recent Delaware cases involving independent directors of corporations with foreign operations provide a powerful reminder that resigning from the board of directors of a troubled company may not be a … Read more

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Editor's Tweet: Wachtell's David A. Katz and Laura McIntosh discuss Whether a Director can Resign from the Board of a Troubled Company?

Wachtell Lipton Discusses SEC Release on the Use of Social Media under Regulation FD

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Yesterday, the Securities and Exchange Commission (SEC) directly addressed the application of Regulation Fair Disclosure (Regulation FD) to corporate use of social media outlets such as Facebook and Twitter.  In a Report of Investigation—a format used by the SEC to issue general guidance based on a specific situation—the SEC expressly stated that Regulation FD applies to social media in the same manner as it does to company websites:  Any of these communication channels can serve as effective, legal means of broadly disseminating material information to investors, if access to them is unrestricted and if the company has provided advance notice … Read more

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Editor's Tweet: Wachtell Lipton Discusses SEC Release on the Use of Social Media under Regulation FD