Chief Justice Leo Strine Proposes Corporate Governance Overhaul

On October 1, 2019, Delaware Supreme Court Chief Justice Leo Strine released a proposal seeking to reform the American corporate governance system by aligning the incentives of those who control and influence large U.S. corporations (including corporate managers, directors and institutional investors) with the interests of worker-investors. Among other things, Chief Justice Strine calls on corporations to create board-level committees focused on the fair treatment of employees and to increase transparency on how they treat their employees. Emphasizing the importance of institutional investors in shaping corporate governance, the proposal also urges and seeks to incentivize institutional investors to consider the “economic and human interests” of their clients (who are usually worker-investors) by having corporations create quality jobs and act ethically and responsibly toward their consumers and the environment when making voting decisions, including by suggesting certain modifications to the tax laws. The full text of Chief Justice Strine’s proposal is available here.