The Morning Risk Report: DOJ Cooperation May Split Boards, Management - McDermott Will & Emery

The Morning Risk Report: DOJ Cooperation May Split Boards, Management

Overview


Michael Peregrine pointed out that a company’s executives and its board may disagree on how to oppose government charges of executive malfeasance. “What I worry about is an executive leadership team that says ‘we’re going to fight this in every way.’ That’s where the board needs … to ask, ‘how will our aggressive defense give us points with the government?’” Mr. Peregrine explained. He suggested including compliance metrics in executive incentive plans to facilitate cooperation “that’s a win-win for the organization and the executive.”