February 6, 2019

Coming Soon: Senate Bill for Buyback Restrictions

In a Sunday NYT op-ed, Senators Chuck Schumer (D-NY) and Bernie Sanders (D-VT) said they’re going to introduce a bill that would allow companies to buy back shares only if they pay their workers well. Here’s a few articles about their proposal:

CNBC’s “Chuck Schumer and Bernie Sanders Call for Restricting Corporate Share Buybacks”
Bloomberg’s “Top Senate Democrats Propose Limits to Corporate Buybacks”
Yahoo! Finance’s “Chuck Schumer and Bernie Sanders May Be Dead Right About Stock Buybacks”
Vox’s “Bernie Sanders & Chuck Schumer Are Going After Corporate Stock Buybacks”
CNBC’s “Wall Street Defends Buybacks From Sanders, Schumer Attack: ‘Good Companies Buy Back Their Shares'”

More on “Insider Trading: House Bill Targets 10b5-1 Plans”

The “Promoting Transparent Standards for Corporate Insiders Act” – which would require the SEC to study whether Rule 10b5-1 should be amended to add more procedural restrictions for trading plans – passed the House last week, by a vote of 413-3.

This Year’s “Top Risks”?

As you focus on this year’s risk management priorities and refine your “Risk Factor” disclosure, consider that this “WSJ Pro” article reports that over 50 companies (mostly in the tech, entertainment, media & financial services sectors) mentioned AI in their risk factors last year – more than double than in 2017. That number will likely go up again this year, considering that this recent Protiviti survey of 825 directors & executives identifies disruptive innovations – e.g. AI – and competition from “born digital” companies as a top risk.

Meanwhile, on the geopolitical front, the Eurasia Group’s forecast predicts that our current cycle of destruction will cause a global “innovation winter” – and lots of other mayhem that will impact businesses. When it comes to Brexit’s impact on business, this memo from The Conference Board identifies six potential risks and what industries they apply to.

Liz Dunshee