Archive
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BankUnited recruits new general counsel
Kevin Malcolm will join the company next month Several groups have come together to urge US companies to increase diversity on their boards and present a framework for how such change can be achieved. The Diverse Corporate Directors Coalition (DCDC) cites a 2018 McKinsey report as stating that companies in the top quartile for ethnic diversity were 43 percent more likely to see above-average profitability. But it also points to a 2018 review of Fortune 500 companies as finding that from 2010 to 2018 the representation on corporate boards by people of color only increased from 12.8 percent to 16.1…
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TopBuild appoints new general counsel
Luis Machado previously worked at CTS Corporation Daytona Beach, Florida-based TopBuild Corp has hired Luis Machado as general counsel and corporate secretary. Before joining TopBuild, Machado was vice president, general counsel and secretary at CTS Corporation, which designs and manufactures sensors, actuators and electronic components. He has also held senior corporate legal positions at L Brands, the Wrigley Company and Diversey. Machado started his legal career at law firm Altheimer & Gray in Chicago. Donald Walther joined TopBuild as general counsel and corporate secretary in May 2019. He joined API Technologies Corp as general counsel in June of this year.…
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Scientists discover new governance mechanism
A roundup of GRC research from the academic world, as seen by Jeff Cossette Despite decades of academic research, little consensus has emerged as to what factors – and which configuration thereof – lead to an effective corporate governance framework. Now Canadian investigators may have discovered a missing piece of the puzzle. ‘A company’s communications culture has a profound influence on corporate governance,’ says Azadeh Babaghaderi, a PhD candidate at Concordia University and co-author – with Sam Kolahgar and Harjeet Bhabra – of a recent study that presents diverse and far-reaching implications for academics and business leaders alike. ‘Our findings…
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US loan company settles FCPA allegations
World Acceptance Corporation to pay $21.7 million to settle the SEC action – CNBC reported that, according to an SEC filing, McDonald’s is attempting to recoup millions of dollars in compensation it paid former CEO Steve Easterbrook by suing him for allegedly lying during the company’s internal probe into his behavior. The company’s board announced in November that it had terminated Easterbrook for having a consensual relationship with an employee and picked Chris Kempczinski as his successor. McDonald’s now alleges that new information about Easterbrook’s actions came to light in July, prompting further investigation from the company that allegedly found…
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The week in GRC: DoJ urges regulatory policy framework rethink, and PCAOB extends Covid-19 review
This week’s governance, compliance and risk-management stories from around the web Greenville, South Carolina-based consumer loan company World Acceptance Corporation (WAC) has agreed to pay $21.7 million to settle SEC allegations that it violated the FCPA. According to the SEC, the bribery scheme took place at WAC’s former wholly-owned subsidiary in Mexico, WAC de Mexico, which the agency alleges paid roughly $4.1 million in bribes, directly or through intermediaries, to Mexican government officials and union officials from at least December 2010 through June 2017 to obtain and retain business. In a regulatory filing, the SEC says WAC failed to make…
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Study shows extent of 13F rule change proposal’s impact
Opposition to the SEC’s planned reform continues to mount A proposed SEC rule change that would allow almost 90 percent of investors in US public companies not to make 13F filings would have an outsized effect on small and micro cap issuers’ ability to identify their shareholders, according to analysis of the Russell 3000 by IHS Markit. The proposed rule change – which prompted NIRI, a significant number of retail investors and SEC member Allison Herren Lee to express concerns – would raise the threshold of estimated assets under management required for a 13F filing from $100 mn to $3.5…
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Rite Aid appoints general counsel
Paul Gilbert joined the company on an interim basis earlier this year Camp Hill, Pennsylvania-based Rite Aid has appointed Paul Gilbert as general counsel and corporate secretary. Gilbert joined the NYSE-listed company in an interim position on May 21 to help with its virtual AGM and other governance matters. Rite Aid, like hundreds of other US companies, switched from holding its AGM in person this year due to health and safety considerations arising from the Covid-19 pandemic. Gilbert has also offered guidance on various business initiatives as Rite Aid pursues a strategy aimed at positioning the company as the leading…
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Cass recruits first general counsel
Matt Schuckman previously advised the company as outside counsel Nasdaq-listed Cass Information Systems has recruited Matt Schuckman to the newly created position of general counsel. He will also serve as corporate secretary. Schuckman joins Cass after a 20-year career as a commercial and transactional attorney with Armstrong Teasdale. During his time as a partner in the law firm’s commercial services group, Schuckman advised clients – including Cass – on corporate governance issues, M&A, complex contract and business law. St Louis, Missouri-based Cass provides transportation, energy, telecom and waste invoice payment and information services. ‘We established an excellent working relationship with…
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How Regions Financial is navigating to a ‘new normal’
Ben Maiden spoke with Hope Mehlman, executive vice president, corporate secretary and chief governance officer with Regions Financial Corporation, earlier this year about how the company’s AGM, reporting and engagement have adapted to the challenges of the pandemic Regions held its first virtual AGM this year due to the pandemic. How did you prepare for that? Planning for the unexpected and being proactive are key components of good governance. A few years ago we amended our bylaws to allow for a virtual meeting in case there was an emergency or other disruption. Then toward the end of January we started…
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How Calvert examines ESG information and puts it to use
John Streur, president and CEO of Calvert Research and Management, talks to Mike Schnitzel about how his company uses ESG metrics to improve returns for its clients Your firm is all about ESG investing. How did the decision come about to make ESG the centerpiece of your investing strategy? Responsible investing is what we do and we take it from the perspective of our responsibilities to our clients. So in terms of fully meeting our responsibilities to our clients, we use ESG information to really work in two areas. First, we use ESG to inform our security selection. Second, we…