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Nacchio’s Puzzling Insider Trading Defense, Part II

TOTM I’m really starting to worry about the lawyers for former Qwest CEO, Joseph Nacchio. (I first expressed concern here.) Mr. Nacchio has been charged with . . .

I’m really starting to worry about the lawyers for former Qwest CEO, Joseph Nacchio. (I first expressed concern here.) Mr. Nacchio has been charged with 42 counts of criminal insider trading. The charges are based on allegations that Mr. Nacchio learned, after Qwest had made some rosy public statements, that business wasn’t going as well as predicted, and he then sold $101 million worth of stock on the basis of that non-public information.

Read the full piece here.

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Financial Regulation & Corporate Governance

I look pretty young but I’m just backdated, yeah

TOTM The WSJ this weekend has a long piece on the issue of stock option backdating, “The Perfect Payday.” Here’s the tagline… Read the full piece . . .

The WSJ this weekend has a long piece on the issue of stock option backdating, “The Perfect Payday.” Here’s the tagline…

Read the full piece here.

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Financial Regulation & Corporate Governance

CEOs, Shareholders, and Preferences for Risk

TOTM Mark Cuban, owner of the Dallas Mavericks and co-owner of Landmark Theatres, has been blogging about equity-based CEO compensation and the problems it purportedly creates. . . .

Mark Cuban, owner of the Dallas Mavericks and co-owner of Landmark Theatres, has been blogging about equity-based CEO compensation and the problems it purportedly creates. Cuban’s theory is that paying CEOs in company stock does not tend to align their interests with those of shareholders; instead, it leads CEOs to pursue excessively risky business ventures.

Read the full piece here.

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Financial Regulation & Corporate Governance

What I Did on My Blog Vacation

TOTM So I’ve been a little absent from the blog lately. Sorry about that. I have a decent excuse. As our law prof readers know, but . . .

So I’ve been a little absent from the blog lately. Sorry about that. I have a decent excuse.

As our law prof readers know, but others might not, this is prime article submission season. The conventional wisdom is that it’s best your get your article into the hands of newly minted law review editors right after they take over, which usually happens around the first of March. Hence, there’s a mad dash to submit journal articles around this time of year.

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Financial Regulation & Corporate Governance

CBS v. Howard Stern Complaint

TOTM Courtesy of ContractsProf Blog, here is what purports to be a copy of the elusive complaint in CBS v. Howard Stern. ContractsProf Blog includes the . . .

Courtesy of ContractsProf Blog, here is what purports to be a copy of the elusive complaint in CBS v. Howard Stern. ContractsProf Blog includes the following disclaimer regarding the authenticity of the complaint…

Read the full piece here.

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Financial Regulation & Corporate Governance

On disclosure: Shame?

TOTM Daniel Akst in the NYT has an interesting piece on executive compensation and disclosure (HT: Tyler Cowen). He calls for more shame — more reliance . . .

Daniel Akst in the NYT has an interesting piece on executive compensation and disclosure (HT: Tyler Cowen). He calls for more shame — more reliance on norms to manage intractable agency problems…

Read the full piece here

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Financial Regulation & Corporate Governance

Directors’ Duties Even in Solvent Firms

TOTM In the Ribstein & Alces paper mentioned below by Keith, Ribstein & Alces write… Read the full piece here. 

In the Ribstein & Alces paper mentioned below by Keith, Ribstein & Alces write…

Read the full piece here

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Financial Regulation & Corporate Governance

The costs of options expensing rules

TOTM Larry points us to a new corporate finance blog, Richard Booth’s The Quant. It looks like a great blog. The most recent post is on executive compensation–particularly . . .

Larry points us to a new corporate finance blog, Richard Booth’s The Quant. It looks like a great blog. The most recent post is on executive compensation–particularly on the serious problems of expensing options (and the FASB rule requiring it). Here’s a lengthy and informative excerpt (with a couple words from me following)…

Read the full piece here.

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Financial Regulation & Corporate Governance

Nacchio’s Puzzling (Innovative?) Defense

TOTM An article in today’s W$J reports on former Qwest CEO Joseph Nacchio’s planned defense in a criminal insider trading action brought by the SEC. The . . .

An article in today’s W$J reports on former Qwest CEO Joseph Nacchio’s planned defense in a criminal insider trading action brought by the SEC. The defense is perplexing.

Read the full piece here.

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Financial Regulation & Corporate Governance