![]() ![]() ![]() Additionally, institutional investors and proxy advisory firms have become more demanding in their relationships with and requirements of U.S. These economic factors have been coupled with an unprecedented regulatory push from the Securities and Exchange Commission (SEC). Companies are struggling with a declining stock market, supply chain shortages, high interest rates, inflation, and energy uncertainty. The 2022 proxy season has occurred during a period of economic uncertainty for many companies. Our ongoing client work and internal research as well as the Compensation Committee meetings we have attended during the 2022 proxy season give us a comprehensive view of the prevailing issues for Compensation Committees and how these issues are shaping the design and implementation of viable and effective compensation strategies. We frequently are requested to attend meetings of the Compensation Committee to provide our insights and advice regarding trends and developments as well as to render technical advice and services in executive compensation. Pay Governance LLC provides counsel and advice to the Board of Directors’ Compensation Committees of more than 400 prominent publicly-traded companies. The experiment investigated the tradeoffs that individuals make between their own financial interests, and four different social interests-gender diversity, income equality, environmental protection, and faith-based values. Our recent paper, How Much Do Investors Care about Social Responsibility?, attempts to answer these important questions with new empirical evidence from an experiment conducted on 279 Americans with investing experience that involved real monetary gains for participants. But this raises several important questions that have received much less attention: Do individual investors themselves wish to maximize returns, or are they willing to forgo returns for social purposes? And more broadly, do market participants, such as investors and consumers, differ from donors in the ways in which they prioritize monetary gains and the promotion of social goals? Perhaps the most important corporate law debate over the last several years concerns whether directors and executives should manage corporations to maximize value for investors, or to also take into account the interests of other stakeholders or society (see, e.g., Hart and Zingales, 2017 Bebchuk and Tallarita, 2020 Rock, 2021). ![]()
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