A rematch between two governance heavyweights could benefit all corporate constituents, writes holdingren.
On March 2, Harvard Law School Professor Lucian Bebchuk and Roberto Tallarita, associate director of the Harvard Program on Corporate Governance, posted an article on the Harvard Law School Forum on Corporate Governance arguing that stakeholder governance – the practice of serving employees, customers and other corporate
constituents rather than just shareholders – is “illusory” and undermines board and management accountability. On March 3, Martin Lipton and four other partners at the law firm of Wachtell, Lipton, Rosen & Katz issued a memo rebutting Bebchuk’s argument and touting the benefits of stakeholder governance, later published on the same Harvard forum.
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