Executive Compensation as Corporate Waste? Delaware Court Allows a Lawsuit to Continue

I don’t believe that any court has decided in favor of plaintiffs alleging that the payment of executive compensation was a breach of fiduciary duty for a waste of corporate assets—until now. The reason is that (in the face of the business judgment rule) corporate waste is very difficult to prove. But last week, the Delaware Chancery Court allowed plaintiffs to continue with their shareholder derivative claims against the board of CBS Corporation in Feuer v. Redstone.  READ MORE