News
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California State Senate bill aims to limit lawyers’ use of AI
A new Senate Bill from Thomas Umberg seeks to foster human oversight and accountability in the use of AI for lawyers A new Senate bill introduced in California aims to curb how lawyers and arbitrators and lawyers can use AI to support their work, with a focus on data protection and preventing so-called ‘hallucinations’ from fabricating false information. Introduced by Democratic senator Thomas Umberg, amended Senate Bill 574 would require legal professionals to ensure confidential information is not entered into AI systems, to personally review any AI generated work and to prohibit delegation of decision making to machines. The bill…
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The week in GRC: Cryptocurrency firms turn against regulatory bill as Revolut banks on Trump’s light touch for US market entry
This week’s governance, compliance and risk-management stories from around the web – Revolut has abandoned plans to merge with or buy a US bank and will instead pursue a standalone American banking license to accelerate its expansion into the US market. Previously, the UK-based fintech had considered acquiring a US lender to secure a charter quickly, but regulatory and operational hurdles, such as maintaining physical branches and complex approvals, made that route less attractive. According to The Financial Times (paywall), Revolut is now in talks with regulators to apply directly for a license through the Office of the Comptroller of…
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Use of the word ‘diversity’ in corporate disclosures drops sharply in 2025, research shows
New disclosure data shows how quickly corporate language can shift as boards respond to legal, regulatory and investor pressure Only 36 percent of the top 100 US companies mentioned the word ‘diversity’ in human capital management disclosures – compared to 96 percent who did so in 2024 – according to a new report which demonstrates the speed of change in priorities for US firms. The 63 percentage-point decline from year to year was matched across US stock indices, with diversity references falling 60 percent among S&P 500 companies and 51 percent among the Russell 3000, according to law firm A&O…
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People moves: The SEC appoints former BlackRock lawyer as new general counsel
Plus First Citizens BancShares, NatWest and Leidos refresh their compliance line ups The SEC has named Russell McGranahan as its new general counsel to oversee the market regulator’s legal function. McGranahan replaces Jeffrey Finnell, who has served as acting general counsel and will remain at the commission as deputy general counsel. Prior to joining the SEC, McGranahan served as general counsel of the US General Services Administration (GSA). Before that, he was general counsel of Focus Financial Partners, a wealth management firm and spent nine years with BlackRock, serving as managing director, M&A Counsel and corporate secretary. ‘I have known…
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From shareholder to managerial capitalism: how proxy firm regulation and 14a-8 reform will define IR in 2026
Proxy advisor reforms will put more emphasis on board operations In October 2025, Tesla CEO Elon Musk deployed provocative language characterizing proxy advisors as ‘corporate terrorists’ followingISS’s recommendation that shareholders reject his proposed $1 trn compensation package. Musk argued that ISS and Glass Lewis ‘have no actual ownership themselves’ yet effectively control corporate governance outcomes through their recommendations to investors. This identifies a genuine agency problem: proxy advisors bear no economic consequences from their recommendations. JPMorgan Chase CEO Jamie Dimon in his 2024 annual shareholder letter and subsequent public statements, characterized proxy advisors as ‘incompetent’. Dimon cited three fundamental failures:…
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Corporate Governance Awards 2025: On the red carpet with General Motors
John Kim on what it means for his team to make the shortlist Governance Intelligence recently presented its18th annual Corporate Governance Awardsat a gala ceremony this past November in New York City. Live from the red carpet, we spoke with several esteemed guests from across the world of GRC, includingFernando Contreras,VP,chief compliance officer & corporate secretaryatBaker Hughes. In our conversation, Contreras thanks his colleagues for their contribution to his success, speaks on the ESG themes that where key in 2025 and his advice for companies entering in 2026. The awards celebrate outstanding achievements by the governance profession in areas such…
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Corporate Governance Awards 2025: On the red carpet with Baker Hughes
Fernando Contreras on his governance professional of year nomination Governance Intelligence recently presented its18th annual Corporate Governance Awardsat a gala ceremony this past November in New York City. Live from the red carpet, we spoke with several esteemed guests from across the world of GRC, includingJohn Kim,assistant corporatesecretaryand lead counsel at GeneralMotors. Kim reflects on what being nominated for Best Proxy Statement (small cap) means to his team, what changes they made to their proxy in 2025 and the increasing importance of cybersecurity and disclosures. The awards celebrate outstanding achievements by the governance profession in areas such as hosting AGMs, compliance…
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The week in GRC: Defense contracts take legal advice against Trump executive order as a Delaware judge dismisses Paramount lawsuit fast tracking
This week’s governance, compliance and risk-management stories from around the web – Defense contractors are seeking legal advice after President Donald Trump issued an executive order tying share buybacks, dividends and executive pay to weapons delivery schedules under the White House’s ‘Prioritizing the Warfighter in Defense Contracting’ order. According to Reuters (paywall), firms fear penalties, including contract terminations, if they fall behind, even though some executives view the order as vague and difficult to enforce. Concern over administration influence is prompting companies to rethink financial strategies to avoid going against the policy. Lockheed Martin publicly endorsed the focus on speed…
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One battle after another: Why the 2026 proxy season might be marked by activist ‘do-overs’ and M&A proposals
This year’s proxy season is likely to provide a level of excitement that would rival any Hollywood script SEC chairman Paul Atkins has ordered the Division of Corporation Finance to carry out acomprehensive review of Regulation S-K, the cornerstone of non-financial disclosure requirements for public company filings in the US. The move, announced January 13, came with a clear focus on cutting through what Atkins described as a growing volume of disclosure that may not meaningfully aid investors. Atkins said that Regulation S-K has expanded substantially since its inception in1982, and that the resulting filings can bury investors in information…
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Atkins launches review of Regulation S-K amid ongoing SEC reforms
More regulatory changes are on its way as the SEC sets its sights on corporate disclosure reforms In the current critically-acclaimed filmOne battle after another, circumstances compel the lead character, played by Leonardo DiCaprio, to revisit old conflicts and confront former adversaries. A similar narrative could prove to be one of the major themes in the shareholder activism world this year, as old battles flare up again and activists continue to push for improved corporate performance. Bruce Goldfarb, president and CEO of Okapi Partners My view is largely based on the momentum generated by last year’s high volume of activist…