In fact, the outrage has grown so intense that the country's top CEOs are now vigorously debating the problem in private. Two who did speak up, Home Depot's (Charts) Bob Nardelli and Pfizer's (Charts) Hank Mc Kinnell, have taken some of the hardest pounding lately.In the end it came down to the headstrong CEO's refusal to accept even a symbolic reduction in his stock package.After he pulled down .1 million from his last yearly contract, angry investors were promising an ugly fight at the company's annual meeting in May.
The question presented in this appeal is whether lead plaintiff Bucks County Retirement Board's (“Bucks County's”) Amended Class Action Complaint (“ACAC” or “amended complaint”) against Home Depot, Inc. Under these provisions, a securities fraud claim based on failure to reveal information to investors, as Bucks County has alleged here, has six elements: (1) a material misrepresentation or omission; (2) made with scienter; (3) a connection with the purchase or sale of a security; (4) reliance on the misstatement or omission; (5) economic loss; and (6) a causal connection between the material misrepresentation or omission and the loss, commonly called “loss causation.” Dura Pharms., Inc. Therefore, the pivotal issue in this case remains whether Bucks County adequately pleaded a violation of § 10(b) and Rule 10b-5. Notably, Rule 9(b) does not require a plaintiff to allege specific facts related to the defendant's state of mind when the allegedly fraudulent statements were made. These are just two reasons why courts may be skeptical of confidential sources cited in securities fraud complaints; there are likely others. As our discussion of the applicable law makes clear, a court examining a motion to dismiss under the PSLRA must carefully examine the complaint to determine whether the allegations, taken as a whole, create a cogent and compelling inference that the named defendants acted with the requisite scienter. Corporate America's executive-compensation system is broken. The topics of conversation: the extraordinary power of hedge funds, of course, and the unnerving liquidity of the markets. But rewards that defy all economic logic don't simply spring from greed. (FORTUNE Magazine) -- The setting: a private gathering that included several leading lights on Wall Street and the heads of some of America's biggest companies.She went on to a career in strategic financial planning with smaller firms."Everyone who worked there thought they were the company. The rule was stay in stock [have inventory on the shelves] and take care of the customer." She recalls, "It was total open door. Bernie [Marcus] and Arthur [Blank] were involved in teaching every management-training class.