The DNC and Corporate Governance

This Blog operates out of Denver, the current location of the Democratic National Convention, which began yesterday.  It is the convention that will, on Thursday, nominate Barak Obama.  We have mentioned Obama a number of times on this Blog, including his endorsement by some former SEC chairmen, his support for "say on pay," and the inclusion of "say on pay" in the Democratic Platform.   Denver is, as a result, overflowing the election talk and Obama paraphanalia.  This is particularly true given that Colorado is a purple state and one of the places targeted by both parties.

For those of us who live in Denver, there is some opportunity to observe the convention in action.  Getting inside requires a pass and getting a pass requires knowing someone.  Some are contributors (or fundraisers) who go through their political connections.  Some are lending out their house to those attending the convention and receive passes as a return favor.  Still others come from places outside of Colorado and know members of the Democratic hierarchy, whether politicians or fundraisers and are bestowed with entry opportunities.  Then there are the rest of us who know someone who knows someone in these three categories and manages to tag along.

Last night, I was able to tag a long with a faculty member from the Law School (Roberto Corrada) who scored two passes as an "Honored Guest" (as opposed to Guest and Special Guest) to the first night of the convention.  It was from the nose bleed vantage point in the capacious Pepsi Center in Denver that we were able to watch a number of speakers, including Michelle Obama (we were still searching for seats when Edward Kennedy spoke).

We can report definitively that Michelle Obama said nothing about corporate governance or say on pay (the theme was something like middle class America).  But she did note that her speech and her husband's would be given during the same week when, 45 years ago, Martin Luther King gave his "I have a dream" speech.  In other words, however one comes out politically, it was an historic occasion and one that, 45 years ago, was only a dream.  It was a honor to be there for the event. 

Comments

[Paul Karlsgodt]

What a cool experience it must have been to be in the Pepsi Center during the convention, regardless of vantage point. Nowhere does the term "nosebleeds" have more meaning than here in Denver!

I just came across your blog for the first time this afternoon and of course have added it to my own blogroll. The collaborative student-faculty approach is a teriffic idea. Keep up the great work.

[Steve]

I wouldn't expect too much corporate law reform, at least from a federalism perspective, with Delaware's Biden in the White House.

[J Robert Brown Jr.]

In that regard, the WSJ has an article today on how Joe Biden indicated opposition to possible amendments to the bankruptcy statute to prevent most companies from filing in Delaware (there is essentially national venue for selecting jurisdictions, with Delaware the most popular). Why do companies file there? According to the WSJ article, "But other lawyers say the state is popular because Delaware judges are considered relatively generous in awarding pay packages to the management of distressed companies -- and in awarding high fees to bankruptcy lawyers. Delaware attorneys are among the beneficiaries, aided by state rules requiring companies to retain local bankruptcy counsel." http://online.wsj.com/article/SB121978535306574101.html