Corporate
Mar. 2, 2018
Delaware ruling tightens reins on director pay
The Delaware Supreme Court recently held that director compensation awards made pursuant to discretionary compensation plans are not to be afforded review under the deferential business judgment rule.
Tamara M. Kurtzman
Managing Partner
TMK Attorneys
8383 Wilshire Blvd Ste 850
Beverly Hills , CA 90211
Fax: (323) 782-8587
In a decision that promises to change the way that corporations compensate directors, the Delaware Supreme Court held in In re Investors Bancorp, Inc. Stockholder Litigation that director compensation awards made pursuant to discretionary compensation plans are not to be afforded review under the deferential business judgment rule. Instead, the court made clear that such awards are subject to the entire fairness test -- a far more stringent...
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