executive compensation litigation john l. utz
TRANSCRIPT
Executive Compensation Litigation
John L. Utz
www.utzmiller.com
www.utzmiller.com
Executive Compensation Litigation
Stock Option Backdating Ryan v. Gifford (Del. Ch. 2007) – p. 27 and
Newsletter Vol. 3 No. 4.
The court was “convinced that the intentional violation of a shareholder-approved stock option plan, coupled with fraudulent disclosures regarding the directors’ purported compliance with that plan, constitute conduct that is disloyal to the corporation. . ..”
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Executive Compensation Litigation
Spring-Loaded Options In re Tyson Foods, Inc. (Del. Ch. 2007) – p. 32 and
Newsletter Vol. 3 No. 4.
Allegations that “directors that approved spring-loaded (or bullet-dodging) options (a) possessed material non-public information soon to be released that would impact the company’s share price, and (b) issued those options with the intent to circumvent otherwise valid shareholder-approved restrictions upon the exercise price of the options” would satisfy the plaintiff’s requirement to show adequately at the pleading stage that a director acted disloyally and in bad faith and is therefore unable to claim the protection of the business judgment rule.
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Executive Compensation Litigation
Clawbacks In re Tyson Foods, Inc. (Del. Ch. 2007) – p.
32 Scrushy v. Tucker, 2006 WL 932013 (Ala.
2006) FPL: Settlement following Klein v. FPL
Group, Inc., 2004 WL 302292 (S.D. Fla. 2004) Olander v. Compass Bank (5th Cir. 2004) –
Newsletter Vol. 1 No. 1
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Executive Compensation Litigation
Clawbacks (cont.) WorldCom, Inc. v. Boyne (4th Cir. 2003) – p. 96 International Business Machines Corp. v.
Martson, 37 F.Supp.2d 613 (S.D. N.Y. 1999) International Business Machines Corp. v.
Bajorek, 191 F.3d 1033 (9th Cir. 1999) Foley v. American Electric Power (S.D. Ohio
2006) – Newsletter Vol. 2 No. 9
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Executive Compensation Litigation
Clawbacks (cont.) ERISA Plans: Importance of top-hat status (to
avoid vesting requirements) Thornton Oil Corp. v. Perconti (Ky. App. 2003) –
p. 46 Fields v. Thompson Printing Co., Inc. (3d Cir.
2004) – p. 46
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Executive Compensation Litigation
Fiduciary Claim: Disclosure, Treatment of Backdated Options in Merger Louisiana Municipal Police Employees’
Retirement Systems v. Crawford, 918 A.2d 1172 (Del. Ch. 2007)
Stock Options: Blackout Necessary Under Securities Laws In re Cendant Corp. Securities Litigation (3d
Cir. 2006) – Newsletter Vol. 3 No. 2
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Executive Compensation Litigation
Attorney-Client Privilege: Top-Hat Plan Marsh v. Marsh Supermarkets, Inc. (S.D. Ind.
2007) – p. 43SERP Compensation Definition: Stock
Option Gains Adams v. Louisiana-Pacific Corp. (4th Cir. 2006)
– p. 50
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Executive Compensation Litigation
SERP Compensation Definition: Severance Pay Gilliam v. Nevada Power Company, 2007 WL
1557483 (9th Cir. 2007)SERP Compensation Definition: Retention
Compensation Craig v. The Pillsbury Non-qualified Pension
Plan (8th Cir. 2006) – p. 52
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Top-Hat Plan: Definition Bakri v. Venture Mfg. Co. (6th Cir. 2007) – p. 56 Guiragoss v. Khoury (E.D. Va. 2006) – p. 56
Top-Hat Plan: Release, Fiduciary Claims, Estoppel Callahan v. Unisource Worldwide, Inc. (D.
Conn. 2006) – p. 57
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Executive Compensation Litigation
Top-Hat Plan: Retroactive Addition of Exhaustion of Remedies Requirement Eastman Kodak Company v. STWB, Inc. (2d Cir.
2006) – p. 58Oral Promise: ERISA Fiduciary Claim,
Equitable Relief Eastom v. Redmond (N.D. Ind. 2006) – p. 60
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Executive Compensation Litigation
Oral Grant of Options Aretakis v. General Signal, Inc. (D. Mass.
2006) – p. 70State Wage Payment Statutes
Paolini v. Albertson’s Inc. (9th Cir. 2007) – p. 80Stock Options: Failure to Tender Payment
with Exercise Notice Deal v. Consumer Programs, Inc. (8th Cir.
2006) – p. 81
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Executive Compensation Litigation
Stock Option Vesting: Acceleration Upon Termination, Share Price Trigger Ziegler v. HRB Management, Inc. (6th Cir. 2006)
– p. 82Employer’s Ability to Modify Retiree Welfare
Benefits Markowitz v. Celanese Corp. (D. N.J. 2006) –
p. 84
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Executive Compensation Litigation
Covenants Not to Compete Morris v. Schroeder Capital Management
International (2d Cir. 2007) – p. 91Separation Agreement: Characterization of
Termination, Equity Compensation, Fraud Healy v. MCI WorldComm Network Services,
Inc. (9th Cir. 2007) – p. 102
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Executive Compensation Litigation
Severance: Outsourcing, Prior Employer’s Representations Engler v. Cendant Corp. (E.D. N.Y. 2006) – p.
104Garnishment of Retirement Benefits:
Criminal Restitution U.S. v. Novak (9th Cir. 2007) – p. 105
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Executive Compensation Litigation
Split Dollar Life Insurance: Employer’s Rights Extinguished by Employment Release Goldring v. Franklin Equity Leasing Co. (Mo.
Ct. App. 2006) – p. 106Severance Benefits: Change of Control,
Comparable Benefits Kolkowski v. Goodrich Corp. (6th Cir. 2006) – p.
106
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Executive Compensation Litigation
Stock Options: Negligent Misrepresentation, Period for Exercise First Marblehead Corp. v. House, 473 F.3d 1
(1st Cir. 2006)Waste: Entrenchment of Board and Key
Executives Sample v. Morgan, 40 EBC 2389 (Del. Ch.
2007)
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