The Draft Bailout Plan: Say Goodbye to Director Primacy

Via TPM comes the executive summary of the draft bailout plan circulating on the hill. Looks like Dodd’s bill, though with language about executive compensation that provides a “perverse incentive” for “inappropriate or excessive risk taking”. Additionally, participating companies have to permit extremely broad shareholder democracy! (This would be a pretty extraordinary change in current practice.) There also language about helping mortgagees that Frank & Kaimi ought to like.

Notably absent: any discussion of the cost of the program or its funding; a bailout of foreign firms; a pricing mechanism.

More later. Off to teach Corps, where I will, no doubt, speculate wildly about what this does to the future of Delaware’s preeminence as a source of corporate law.

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