Steven Davidoff Solomon

Those Israel boycotts are illegal

Steven Davidoff Solomon and Eugene Kontorovich write for The Wall Street Journal, Dec. 1, 2015

The moral myopia and academic perversity of these boycotts have been widely discussed. Less well understood is that in many cases they also are illegal. Under corporate law, an organization, including a nonprofit, can do only what is permitted under the purposes specified in its charter.

Protection Bureau’s stormy path to reform the auto finance industry

Steven Davidoff Solomon writes for The New York Times, Dec. 1, 2015

House Republicans are trying to shut down the Consumer Financial Protection Bureau’s attempt to regulate the $900 billion auto finance industry. It’s a political battle that just might lead to the end of the fledgling agency’s mission to regulate every nook and cranny of consumer finance.

How much to pay a director? There’s no clear answer

Steven Davidoff Solomon writes for The New York Times, Nov. 10, 2015

Director pay is one area in which pay for performance may not even be the best idea. It could give directors incentive to encourage a company to take outsize risks. Since directors are usually protected from the downside and unlikely to be held liable, missteps might end up hurting shareholders.

Shareholders vote with their dollars to have less of a say

Steven Davidoff Solomon writes for The New York Times, Nov. 4, 2015

The same shareholders who repeatedly assert that they care about corporate governance and are for a shareholder voice do not seem to care about that voice at the initial offering stage. Perhaps this says a lot about how much shareholders value their vote, and it may be very little.