Today we continue our weekly installment highlighting the best of the corporate and securities blogosphere from this past week. Highlights include Citigroup’s failed say-on-pay vote, corporate governance concerns at Facebook, corruption at the London Olympics and more. If there are any corporate or securities blogs you think should be highlighted by our Top 5, please comment on this post and we’ll check them out!
1) FCPA Compliance & Ethics Blog: London Calling: The Olympics and Corporate Hospitality under the UK Bribery Act - Olympic fever is starting to catch on as the London games kick off in less than 100 days. In this post, Thomas Fox discusses whether corporate hospitality at the summer games could get companies in hot water under the new UK Bribery Act.
2) The Race to the Bottom: Citibank and Say on Pay: A Metaphysical Analysis - In a bit of surprising news this week, Citigroup shareholders failed to approve the company’s executive compensation practices marking the first time a major financial institution has experienced a negative vote. In this post, J. Robert Brown delves into what could be behind the vote.
3) SEC Actions: The SEC’s New Approach to Economic Analysis in Rule Writing - Economic analysis in SEC rule making is becoming an increasing concern amid criticism from Courts and other government bodies. On April 17th, SEC Chairman Mary Schapiro told Congress that the SEC has begun involving its staff economists earlier in the rule writing process. This post outlines the new approach to economics in rule writing.
4) The Conglomerate: Zuckerberg’s Folly - Following on the heels of last week’s big announcement of Facebook’s acquisition of Instagram came news that Facebook CEO Mark Zuckerberg negotiated the $1 billion deal largely without board input. In this post, Gordon Smith discusses the corporate governance issues raised by recent events and how they could affect Facebook’s upcoming IPO.
5) The D&O Diary: Can Separate Settlements Improve the Securities Suit Settlement Process? Rarely is a securities class action lawsuit resolved in any way other than a negotiated settlement – a very imperfect process. In this post, Kevin LaCroix discusses the findings of a recent academic study that proposes allowing each defense-side party to settle with the plaintiffs separately. LaCroix sets out his thoughts on the proposal and analyzes whether it would in fact solve the problems in an appropriate and acceptable way.