The Delaware Court of Chancery Revisits Director Equity Awards

May 24, 2017

Publication| Corporate Transactions| Corporate & Chancery Litigation

The Delaware Court of Chancery recently held thatstockholder approval of an equity incentive plan thatincluded relatively broad sub-limits on the number ofshares available specifically for awards to non-employeedirectors provided “advance ratification” of subsequentawards to the non-employee directors. The Court’sopinion provides significant guidance to corporationsand practitioners in drafting and seeking stockholderapproval of equity incentive plans, and in defendingagainst challenges to awards made to directors understockholder-approved plans.

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