F. Hodge O'Neal Corporate and Securities Law Symposium
Authors: Randall S. Thomas (Vanderbilt University) , Kenneth J. Martin (New Mexico State University)
This Article focuses on the last of shareholders’ alternatives: suing. Shareholder derivative litigation has frequently been an engine for changing abusive corporate practices. The well-tested claims of breach of duty of care, breach of duty of loyalty, and waste, are available when the appropriate facts support them. In recent history, a large number of determined plaintiffs have brought such claims, challenging abusive corporate pay practices in corporations.
Keywords: Executive compensation, Stockholders' derivative actions, Smith v. Van Gorkom 488 A.2d 858 (Del. 1985), Chief executive officers, Wages and salaries, American Law Institute
How to Cite: Thomas, R. & Martin, K. (2001) “Litigating Challenges to Executive Pay: An Exercise in Futility?”, Washington University Law Review. 79(2).