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The collection of all scholarly commentary on law, economics, and more

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Help Wanted in Columbia, Missouri

I’m on a committee charged with locating qualified candidates for an endowed professorship at the University of Missouri-Columbia School of Law (my home institution). The position is not limited to any area of law, but candidates should have a proven track record of scholarly productivity. If you’re a star of the legal academy (or at ... Help Wanted in Columbia, Missouri

SEC to propose amendment to Rule 14a-8 in light of AFSCME decision

As discussed by Prof. B. in this post, the 2nd Circuit recently ruled “that a shareholder proposal that seeks to amend the corporate bylaws to establish a procedure by which shareholder-nominated candidates may be included on the corporate ballot does not relate to an election within the meaning of [Rule 14a-8(i)(8)] and therefore cannot be ... SEC to propose amendment to Rule 14a-8 in light of AFSCME decision

J&J’s Bundled Discounts Victory

As reported here, Johnson & Johnson scored a major victory last week in a case challenging some of its discounting practices. The jury concluded that J&J had not engaged in monopolization of the market for “trocars,” which are sharp cylindrical devices used in endoscopic surgery. Plaintiff Applied Medical Resources Corp., which sells trocars that compete ... J&J’s Bundled Discounts Victory

No, Matt, executive compensation is not all about norms

[UPDATE:  In order to avoid linking glitches we removed the quotes from around the phrase, “all about norms” in the original title.  This post thus has a different url than the original but is otherwise the same.] In a post titled, “Backdating: Yes, Virginia, Execs Do Want Inflated Pay,â€? over at PrawfsBlawg, Matt Bodie weighs ... No, Matt, executive compensation is not all about norms

Henderson on Executive Compensation in Bankruptcy

Todd Henderson’s paper finds that compensation arrangements of solvent and insolvent firms are similar to each other. The empirical strategy involves the assumption that firms in bankruptcy are a useful control group for testing agency theory explanations of executive compensation because those costs are significantly lower for insolvent firms. I don’t know enough about bankruptcy ... Henderson on Executive Compensation in Bankruptcy

Defending (Positive) Law & Economics

Securities Mosaic is a fantastic resource for anyone working in the securities field. It provides comprehensive information in six key areas: disclosure, laws, rules, guidance, news, and compliance centers. In addition, the site features SM Blogwatch, which republishes posts from various securities-related blogs, including this one. Yesterday, I was formally welcomed to the SM Blogwatch ... Defending (Positive) Law & Economics

Discretionary Spending (and my mother)

Back during GW’s first term, when various folks were positing that the economy was in a recession, my mother said something along the lines of “I know that we are not in a recession because people are still buying bras from Victoria’s Secret.” True story. My mom’s point, for those of you who have never ... Discretionary Spending (and my mother)

Chief Judge Easterbrook

Deven Desai at Concurring Opinions discusses an interesting article on law.com reporting that my old boss, Judge Frank Easterbrook, will soon become Chief Judge of the Seventh Circuit. Interestingly, the article suggests, and the judge in an interview confirms, that not very much about the Seventh Circuit is likely to change. The court is already ... Chief Judge Easterbrook

Explaining Backdating (and Jenkins Channels Manne Again)

Holman Jenkins reports that a group of economists led by Milton Friedman and Harry Markowitz are getting behind the idea of putting an end to the expensing of options. It is a great column. Jenkins goes on to discuss options backdating and makes the following points, which will sound unfamiliar to TOTM readers: “In no ... Explaining Backdating (and Jenkins Channels Manne Again)

SSRN Top Tens for Corporate, Corporate Governance, and Securities Law

The current SSRN top tens for corporate, corporate governance, and securities law are after the jump.

The Perils of Paternalism

According to Bar None, an op-ed by Jack Turner in today’s NYT, “history shows that, however commendable the reasoning, efforts to control how people drink — or eat, or smoke — tend to backfire.” I’ve made a similar argument in discussing smoking bans. Advocates of such bans (often citing the work of “norms scholars,” such ... The Perils of Paternalism

It’s not a PIPE bomb

Similar to Gretchen Morgenson’s recent attack on Rule 144A offerings (discussed by Larry Ribstein here), page C1 of yesterday’s W$J assails PIPE offerings (see here). PIPE stands for “private investment in public equity” and is a financing technique used by many small and mid-size public companies. In a typical PIPE, a company privately negotiates a ... It’s not a PIPE bomb