D&O liability News

Tesla Pays CEO Musk Nearly $1M for Controversial D&O Insurance Arrangement

Tesla Inc. is making a one-time payment of almost $1 million to Chief Executive Officer Elon Musk related to a controversial insurance arrangement he agreed to with the carmaker’s board earlier this year. The company is backtracking from plans to …

Companies Press Insurance Brokers for Workarounds to Rising D&O Costs

When Elon Musk said in April he was dropping the insurance policy that protects Tesla Inc.’s board from shareholder lawsuits, it got Skip McBride’s attention. To McBride, who used to manage law firm Bracewell LLP’s malpractice exposure, Musk’s decision to …

Corporations Grow Nervous as Compensation for Directors Rises

It’s nice work if you can get it. The average annual compensation for non-executive directors at S&P 500 companies rose 2 percent to $304,856 last year, topping $300,000 for the first time and 43 percent higher than it was 10 …

Serving on One Outside Board Is Enough, BlackRock Warns Directors

BlackRock Inc. is stepping up opposition to U.S. CEOs who sit on more than one corporate board beside their own, arguing that working as a director takes increasingly more time, a report from the world’s largest asset manager showed on …

Facebook Must Turn Over Records on How Execs Handle Data Privacy, Judge Rules

A U.S. judge ordered Facebook Inc. to give shareholders emails and other records concerning how the social media company handles data privacy, after data for 87 million users was accessed by the British political consulting firm Cambridge Analytica. In a …

Alphabet Directors Sued Over Exit Pay, Coverups Tied to Harassment Allegations

Alphabet Inc.’s directors were sued by shareholders for approving a $90 million exit payment to Andy Rubin, the creator of the Android mobile software, while helping cover up his alleged misconduct and similar misbehavior by other executives. The investors claimed …

7 Areas of Directors & Officers Liability to Watch in 2019

Risk management involves looking around the corner to spot future threats. When it comes to director and officer liability, the question is this: What’s on the horizon for directors and officers in 2019? Here are seven critical areas of risk …

Cybersecurity Tops D&O Liability Risks

Cybersecurity is the top directors and officers (D&O) liability concern for organizations today, while claims brought by employees, including claims for harassment or discrimination, and regulatory enforcement risks are also critical D&O exposures. According to Willis Towers Watson’s 2018 Management …

Slew of Republican Judicial Appointments Could Bode Well for D&O Insurers

Directors and officers (D&O) insurance has faced major losses in recent years, due in part, to what some call a significant increase in shareholder securities class action lawsuits. But a slew of new judicial appointments through the Republican-led Congress could …

Intellectual Property Coverage Presents Challenges in Private D&O

Physical property damage due to natural disasters, weather-related or man-made incidents, can be relatively straightforward to assess, but understanding how a different form of property causes damage can be a little more ambiguous, according to panelists at the recent Professional …