December 7, 2022
Preparation for 2022 Fiscal Year-End SEC Filings
and 2023 Annual Shareholder Meetings
Securities & Capital Markets Practice
As our clients and friends know, each year Mintz provides an analysis of the regulatory developments that
impact public companies as they prepare for their fiscal year-end filings with the Securities and Exchange
Commission (SEC) and their annual shareholder meetings. This memorandum discusses key considerations to
keep in mind as you embark upon the year-end reporting process in 2023.
In 2022, while disruptions of the COVID-19 pandemic, such as new variants, oce closures and travel restrictions,
have continued to fade, many public companies continue to face other significant challenges. These include
inflation, higher interest rates, a dicult capital-raising environment, challenges in hiring and retaining
employees and adapting to a more permanent remote or hybrid work environment, supply chain disruptions,
impacts from the conflict in Ukraine, the eects of climate change and ongoing cybersecurity challenges and
risks, among others. Challenges such as these will need to be considered and addressed in companies’ 2022
Annual Reports on Form 10-K. Public companies will also need to assess whether their filer status has changed
since last year and whether they are or are not eligible to avail themselves of the accommodations for smaller
reporting companies or emerging growth companies this year.
In preparing for their 2023 annual shareholder meetings, we expect public companies will be considering the
skills and qualifications of their directors and addressing gaps where applicable through their director
nominations or ongoing board education for existing directors. In addition, we expect boards of directors will
continue to consider issues of board diversity, overboarding and director interlocks as part of the nominations
process. Public companies should also consider early in their annual meeting preparations whether they will
be pursuing a stock option repricing to help improve employee retention and whether they will seek to amend
their charter documents to provide for the exculpation of ocers for breaches of the fiduciary duty of care,
which is now permitted following recent amendments to Delaware law.
In 2022, the SEC has been very active in its rulemaking eorts. At the beginning of this year, the SEC’s rule
mandating universal proxy cards in contested director elections took eect. In addition, the SEC recently
issued its final rules on pay-versus-performance disclosure, which will need to be included in proxy statements
for 2023 annual shareholder meetings. The SEC also recently issued its final rule requiring the national securities
exchanges to adopt rules to require listed companies to adopt clawback policies meeting certain strict
requirements, and we anticipate most public companies will need to adopt new clawback policies in 2023 to
comply with these rules. The SEC is also anticipated to issue its final rule on climate disclosure soon, and public
companies should be taking steps now to prepare to comply with the new requirements. Beyond the climate
disclosure rule, we also expect continued pressure from investors, the SEC, proxy advisory firms and other
stakeholders in connection with establishing rules and standardized disclosure for various environmental,
social and governance (ESG) topics and metrics. In 2023, companies should continue to incorporate ESG
concepts into their ongoing board conversations and their routine disclosure practices. Mintz is a leader in
assisting companies and their boards in addressing the ESG movement, and the Mintz ESG Practice continues
to work with clients on these important issues.
Other developments we discuss in this memorandum include proxy advisor voting guidelines, cybersecurity
and recent litigation impacting corporate governance and disclosure.
Boston | London | Los Angeles | New York | San Diego | San Francisco | Washington
© 2022 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Information herein may be considered attorney advertising.
Boston | London | Los Angeles | New York | San Diego | San Francisco | Washington
© 2022 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Information herein may be considered attorney advertising.
2
Updating the MD&A and Risk Factors in 2023................................................................................................................... 3
Filer Status Transitions in a Volatile Stock Market ........................................................................................................... 4
Potential Proposals for 2023 Annual Meetings ................................................................................................................. 5
Implementing Ocer Exculpation for Public Companies Incorporated in Delaware .................................................... 5
Repricing Underwater Options ............................................................................................................................................................7
Say-on-Frequency ................................................................................................................................................................................... 8
Universal Proxy Card Rules and Voting Disclosure ..................................................................................................................... 9
Evaluating Board Composition ....................................................................................................................................................9
The Board Matrix .....................................................................................................................................................................................10
Board Diversity ........................................................................................................................................................................................10
Overboarding of Directors ...................................................................................................................................................................11
Director Interlocks ..................................................................................................................................................................................12
Compensation Matters .....................................................................................................................................................................12
New Pay-Versus-Performance Disclosure ..................................................................................................................................... 12
New SEC Clawback Requirements ...................................................................................................................................................14
SEC Regulatory Updates ................................................................................................................................................................15
Mandatory Electronic Filing of Form 144 ......................................................................................................................................15
Pending Climate Disclosure Requirements ...................................................................................................................................15
Rule 10b5-1 and Insider Trading .........................................................................................................................................................17
Privacy Legislation, Data Protection and Cybersecurity Disclosure ...................................................................18
Litigation and Court Decisions Impacting Corporate Governance and Disclosures .................................20
Continued Viability of SEC Administrative Proceedings .........................................................................................................21
Rejection of Shareholder Demand Can Be an Independent Breach of Duty ...................................................................21
Breach of Duty of Loyalty Claims Against Directors Appointed by an Activist Shareholder ...................................21
Second Circuit Weighs In on “Scheme” Liability Under Section 10(b) .............................................................................22
When Is There an Obligation to Disclose Government Investigations? ............................................................................22
Company’s Strict Adherence to Advance Notice Bylaw Requirements Upheld............................................................22
2023 Proxy Advisors Voting Guidance Updates ............................................................................................................. 23
2023 Periodic Report Filing Deadlines .................................................................................................................................26
TABLE OF CONTENTS
