- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jaclyn Jaeger2023-03-10T13:30:00
The fiduciary duty of oversight that historically has applied only to directors “applies equally to officers,” including chief compliance officers, the Delaware Court of Chancery explicitly held in a recent ruling.
The Jan. 26 decision by Vice Chancellor J. Travis Laster in the case McDonald’s Corporation Stockholder Derivative Litigation means shareholders can proceed to trial with their consolidated derivative lawsuit against David Fairhurst, the fast food chain’s former global chief people officer.
A second shareholder derivative lawsuit filed against McDonald’s current and former board members alleging breach of oversight duty was dismissed by Laster in a separate decision issued March 1. In that decision, Laster found the directors took steps to address the toxic culture.
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The Securities and Exchange Commission found McDonald’s violated federal securities law when it failed to fully disclose material factors regarding the firing of former Chief Executive Stephen Easterbrook in 2019.
McDonald’s has agreed to drop its lawsuit against disgraced former CEO Steve Easterbrook, who will return more than $105 million in equity and cash he received upon the termination of his employment in 2019.
A fresh podcast from the Theranos whistleblower and a new compliance association for Black practitioners get a round of applause from us this week, while a complicated case involving McDonald’s lands the company on both the “Nailed It” and “Failed It” lists.
Companies spend huge sums on audit, risk management, and compliance to alert them about potential legal issues before they escalate into serious corporate governance failings. There’s only one problem, however–they often misread their own early warning signs or ignore them altogether.
Company training has always been equal parts important and annoying. But a recent inquest found some eLearning courses fail to warn companies when employees struggle through education and testing. For 13-year-old Hannah Jacobs, the consequences ended with her death.
Norfolk Southern Corp., the railroad still cleaning up the environmental and financial damages caused when one of its trains derailed in a small Ohio town, has fired its top executive and chief legal officer after concluding they had an affair that violated company policies.
