GRC News Roundup: RiskMetrics Decision on Ackman-Target Proxy Fight Looms Large
Good morning and pleasant Monday to all of our readers out there.
As you may have noticed, activity was a little more sparse over the past week than we have become accustomed to here at CCI. We are currently developing some features and preparing some new content for posting, and spent a good deal of time last week working on these endeavors, the fruits of which we expect to be rolling out over the next few weeks.
To start off another week here at CCI, we bring you a GRC News Roundup to get to up to speed on some of the latest and greatest stories from around the world of governance, risk, and corporate compliance. Let’s get right to it:
RiskMetrics’ Decision Looms Large in Ackman’s Target Fight
Bill Ackman is getting some support in his effort to win some Target Corp. (TGT) board seats, though the activist hedge-fund manager’s ambitious wish of getting five seats appears more unlikely.
Ackman, founder of Pershing Square Capital Management, is asking shareholders to elect five directors to the retailer’s board. Two proxy-voting advisory firms have made their decision in Ackman’s battle with the retailer. Proxy Governance Inc. supports just two of Ackman’s nominees and Egan-Jones supports none of Ackman’s nominees, even while withholding its votes for two of Target’s incumbents.
But corporate governance experts say the big event will occur next week when RiskMetrics renders its decision. RiskMetrics, expected to announce its recommendation by Tuesday, typically advises more than 20% of shareholders, while Proxy Governance and Egan-Jones combined advise less than 10%. Many shareholders pay these firms to advise on voting decisions, and in this case, no definitive consensus has been reached.
>>>read entire article on the upcoming RiskMetrics decision in the Ackman-Target proxy battle at CNNMoney.com.
Related Resources:
- RiskMetrics Decision on Target, Ackman Proxy Battle Heads to RiskMetrics Forum — (Reuters)
- RiskMetrics Holds Forum Webcast with Target, Pershing — (PR-Inside.com)
- Sides Split in Proxy Fight Over Target Board — (Minneapolis Star Tribune)
- Ackman Publicly Pits His Board Nominees Against Target — (Wall Street Journal)
- Ackman Leads Proxy Fight For Target Board — (CCI)
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MBIA Enhances Corporate Governance by Separating Chairman, CEO Roles
MBIA Inc. announced that in keeping with its commitment to implement and maintain the highest standards of corporate governance, its Board of Directors has accepted the recommendation of CEO Jay Brown to separate the roles of Chairman and CEO and has elected Daniel P. Kearney as Non-Executive Chairman.
Brown will continue in his roles as CEO and as a member of the Board of Directors.
>>>read entire article at TradingMarkets.com
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IFC Helps Strengthen Corporate Governance Practices in China
IFC, a member of the World Bank Group, is joining forces with the Shenzhen Stock Exchange with a Memorandum of Understanding in order to expand the reach of training programs that will help stengthen corporate governance in China.
IFC, through its Global Corporate Governance Forum, is tailoring the training program to the Chinese market and is working closely with partners on the implementation plan. The stock exchange will provide access to its vast network of industrial and corporate communities.
>>>read entire article at Media-Newswire.com
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Richard Scrushy’s Defense Begins
Shareholders of HealthSouth are suing Scrushy, saying he directed the finance department to falsify earnings to boost the stock price and trigger executive bonuses from 1996 through 2002. They are seeking $2.6 billion in damages. Scrushy’s lawyers don’t dispute the fraud but say he was duped by underlings.
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Somerville also asked Brown, who was a HealthSouth director, if paying for cosmetic surgery violated the corporate compliance codes against wasting com pany money. Earlier in the week, it emerged from testimony that Health South paid for such procedures for members of the girl band 3rd Faze, which Scrushy had been promoting as part of his music-industry hobby.
>>>read entire article from The Birmingham News
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Madoff investors probed by U.S. prosecutors
U.S. prosecutors have broadened their criminal investigation of the Bernard Madoff case beyond the friends and family of the confessed swindler to at least eight investors and associates, The Wall Street Journal reported on Monday, citing people familiar with the matter.
The paper named three investors under investigation by the U.S. Attorney’s Office, including Jeffry Picower and Stanley Chais, two philanthropists who are the target of lawsuits brought by the trustee liquidating the Madoff firm.
>>>read entire article at Reuters
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Tags: corporate governance, proxy battle, Target, William Ackman
