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How Does Your Company Compare?
Since the Sarbanes-Oxley Act (SOX) was signed into law in 2002 and the revised NYSE and Nasdaq listing standards were implemented, certain trends have developed among the corporate governance practices of the 100 largest publicly listed U.S. companies as ranked by revenue in FORTUNE magazine's FORTUNE 500' list (the “Top 100″). For the past 3 years, Shearman & Sterling has analyzed the corporate governance practices of the Top 100. What follows is a summary of our most significant findings with respect to director independence, board leadership, director time commitments and compensation, and shareholder proposals.
Director Independence
The policies of the Top 100 have continued to exceed the NYSE and Nasdaq requirements that a majority of a listed company's board of directors be independent. Fifty-four of the companies surveyed in 2005 have adopted standards requiring that their boards be comprised of more than a simple majority of independent directors. When reviewing actual boardroom figures, the numbers are even more striking: 75% or more of the directors at 81 Top 100 companies are independent. These data may be viewed with some skepticism since questions of independence are decided by the board, and through the adoption and disclosure of categorical standards of independence, NYSE-listed companies can avoid disclosure of relationships below certain materiality thresholds. What is clear is that the number of insiders or company employees serving on the board is on the decline. The CEO is the only non-independent director at 37 Top 100 companies, an increase of two from 2004.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?