• Delaware Supreme Court Rejects Challenge to Executive Compensation Decisions
  • January 25, 2013 | Author: Steven M. Haas
  • Law Firm: Hunton & Williams LLP - Richmond Office
  • On January 14, 2013, the Delaware Supreme Court affirmed the Court of Chancery’s ruling that a complaint failed to state a claim for waste in challenging a board of directors’ executive compensation decisions. The opinion reaffirms that executive compensation decisions are the “classic exercise of business judgment” and, when made by a majority of disinterested and independent directors, will result in deferential review under the business judgment rule.