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Employment contracts and company by-laws usually protect, or indemnify, executives and directors against liabilities, including legal fees associated with defending against such suits.
Mr. Schechner's article pits directors against writers by trying to link a creative response to the classics with an alleged dearth of new work.
He prefers the sort of scheme adopted by Cadbury Schweppes, a British food company which benchmarks its share scheme for directors against the performance of 30 consumer-goods firms, including Unilever and Coca-Cola.
Marsh, an insurance firm, reports that the premiums that companies pay to insure their directors against lawsuits have shot up by between 35% and 900% recently, depending on the business.
"It is a big distraction to be public," he said, noting that it costs millions of dollars a year to comply with accounting and disclosure rules and to provide liability insurance to officers and directors against shareholder suits.
"I'm concerned about companies that, under permissive state laws, indemnify their officers and directors against disgorgement and penalties ordered in law-enforcement actions, including those brought by the commission.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com