Corporate Governance

Joe Biden, Director Self Interest, and a Challenge to the Delaware Model

By J. Robert Brown

Politico has a nice piece (taking mostly from earlier posts on blogs like the Delaware Corporate and Commercial Litigation Blog written by Francis Pileggi) on the impact on corporate governance of Joe Biden leaves the Senate for the White House.  The article focuses mostly on Biden's efforts to protect Delaware's interests in the bankruptcy area.  But anyway you look at it, the Delaware model (lax regulation of corporate boards and excessive deference to directors) may well lose one of its principal protectors, both because he'll leave the Senate and because his views would be neutralized in an administration with a less deferential philosophy (Barak Obama, after all, has sponsored the Say on Pay bill in the Senate). 

The election of Joe Biden as Vice President would, therefore, increase the odds for federal legislation designed to preempt the Delaware model.

Full post as published by The Race to the Bottom on October 24, 2008 (boomark / email).