January 4, 2012
DOJ Enforcement: Stock Received as Executive Pay Can Trigger an HSR Act Filing
Recently, as noted in this Sullivan & Cromwell memo (other memos are posted in our “Antitrust” Practice Area), the DOJ and FTC extracted their first publicized penalty for a corporate executive’s failure to make a Hart-Scott-Rodino Act filing before receiving stock of his employer as part of his compensation. Although the historical background of the enforcement proceeding is somewhat unusual, the proceeding makes clear that the DOJ and FTC will, in appropriate cases, seek penalties against executives who fail to comply with the HSR Act’s filing requirements when they receive stock as part of their executive compensation.