The Equitable Economy

The Legality of the FTC’s Noncompete Ban Is Less Certain Than Masur and Posner Suggest

Gus Hurwitz replies to Jonathan Masur and Eric Posner’s May 8 article defending the Federal Trade Commission’s Congressional mandate to enforce a rule banning noncompetes. He argues that Congressional responses to FTC rulemaking in the 1970s suggest courts are unlikely to find that the FTC possesses such authority, either as a matter of statutory interpretation or under the major questions doctrine.

The Harmful Implications of Failing To Notify Renters About Land-Use Hearings

In new research, Sarah Schindler and Kellen Zale find that the vast majority of the most populous cities in the United States do not directly notify renters of land-use hearings. Such hearings provide a forum for local members of the public to voice opinions about how land should be used for housing and other construction and inform the decisions of policymakers. The failure to directly notify renters about these hearings can skew the decision-making process—and the housing market— toward homeowners and exacerbate anti-development tendencies in land-use law.

Tesla Directors Took a Big Accounting Bet With No Independent Accounting Advice

Lucian Bebchuk and Robert Jackson argue that the Tesla board’s prediction that restoring Musk’s old pay package would require no new compensation charge to Tesla’s financial statement seems not to have been based on any independent accounting advice. This could carry substantial risks for Tesla stockholders.

Tesla Should Take the Court Decision Seriously, Not Dismissively

Lucian Bebchuk argues that, in response to the Delaware court decision invalidating the 2018 pay grant to Elon Musk, the Tesla board did not react with contrition and an attempt to improve its governance, but rather followed an approach of dismissal and defiance.

Tesla Is Short on Director Independence

Lucian Bebchuk and Robert Jackson discuss how Tesla is failing to bolster director independence despite a highly critical court opinion.

Tesla Investors Deserve Musk’s Attention

Lucian Bebchuk and Robert Jackson argue that Tesla’s proposal to ratify Elon Musk’s $50 billion pay package would fail to secure Musk’s devotion of time and effort to Tesla rather than other endeavors, just as its past pay arrangement did.

The Elephant in Tesla’s Boardroom

Lucian Bebchuk and Robert Jackson discuss how Elon Musk’s threat to develop AI projects outside Tesla may distort investors’ votes on restoring his large options grant.

Food for Thought

An excerpt from the second edition of Marion Nestle's book, Food Politics: How the Food Industry Influences Nutrition and Health, out now.

Billionaire Blockholders Are Stifling Competition in Corporate America

Much of the focus of recent antitrust scrutiny has been on companies, with very little attention paid to the motivations of the individual managers setting the anticompetitive strategies of their enterprises. Understanding the concrete personal incentives of the billionaire blockholders entrenched at the helm of most of America’s incumbent corporations is critical to devising effective competition, corporate governance, and tax policy fixes to tackle harmful market concentration at the root.

The FTC Noncompete Ban Is Legal

Jonathan Masur and Eric Posner argue that the Federal Trade Commissions’ recent ban on noncompete clauses is lawful under the plain language of the Federal Trade Commission Act, longstanding court precedent, and well-established administrative law principles.

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