Shareholder Lawsuits regarding Executive Compensation — What’s Next?


Joseph Adams and Chris Scheithauer wrote this bylined article on the increased risk of shareholder lawsuits over executive compensation arrangements. “Even though plaintiff efforts in executive compensation litigation have largely proved to be without merit, plaintiffs’ theories will no doubt continue to evolve and the lawsuits will continue,” the authors wrote. They presented a variety of techniques by which companies can “not only comply with SEC disclosure requirements but also ‘market practice’ to help defeat claims of inadequate disclosure.”