Corporate Governance

In a major win for labor unions, the SEC on Wednesday gave investors new powers to nominate corporate board members.

The American Institute of Certified Public Accountants (AICPA) said new IRS rules to regulate an estimated 1.2 million paid tax preparers would place immense financial burdens on smaller firms that must comply with the regulations. 

Hewlett-Packard has outbid Dell for the data storage firm 3PAR, according to a report from the technology blog TechCrunch. HP's bid of $24 per share, or $1.6 billion, is 33 percent above the $1.15 billion offer Dell announced last week.

Both companies prize 3PAR for its expertise in the high-end market for cloud data storage, which is increasingly the preferred choice for companies versus purchasing and maintaining their own data centers. HP acknowledged during a conference call with reporters that a previous bid for 3PAR had been rejected in favor of Dell's offer.

“HP’s proposal offers superior value to 3PAR’s shareholders. Our global reach, strong routes to market and commitment to innovation uniquely position HP as the ideal fit for 3PAR,” said Dave Donatelli, executive vice president and general manager of Enterprise Servers, Storage and Networking.

Wake Forest law professor and regulation expert Sidney Schapiro on Friday blasted House Minority Leader John Boehner (R-Ohio) for criticizing plans by the Obama administration to implement 191 rules that would have an economic cost. 

General Motors filed paperwork on Wednesday to make an initial public offering of stock.

In an Aug. 12 letter from the Independent Insurance Agents and Brokers of America (IIABA), congressional leaders were urged to repeal the rule requiring businesses to submit 1099 forms to the IRS for purchases over $600.

The group claims the new mandate will create costly compliance headaches for businesses that will divert resources away from expanding operations.

BP will pay a record $50.6 million penalty for failing to fix safety problems that led to the 2005 explosion at a Texas refinery that killed 15 and injured 170 other workers. 

BP also has agreed to spend $500 million to improve working conditions at the Texas City refinery, the Labor Department announced Thursday night. 

"The size of the penalty rightly reflects BP's disregard for workplace safety and shows that we will enforce the law so workers can return home safe at the end of their day," said Labor Secretary Hilda Solis in a statement. "This agreement achieves our goal of protecting workers at the refinery and ensuring that critical safety upgrades are made as quickly as possible.

The Gulf Coast Claims Facility (GCCF) may use BP's oil and gas drilling revenue as collateral to ensure the $20 billion account is funded to pay for damages caused by the Gulf of Mexico oil spill.

Essentially, the victims compensation fund would be guaranteed with drilling revenue, the White House outlined late Wednesday. 

Critics of the arrangement called the move inappropriate and a conflict of interest because it makes BP and the federal government partners in oil and gas production in the Gulf. Details on the plan are still under negotiation. 

BP has sold about $9 billion assets to have cash on hand to pay into the fund.

Wall Street bonuses and incentive compensation are expected to rise over last year, but still remain below 2007 highs, according to a new industry analysis.

Johnson Associates predicts a small increase this year in incentive compensation for financial services employees. Asset management and prime brokerage businesses might see up to 15 percent increases over 2009 levels.

The report also found investment and commercial banking pay has been hampered by market volatility and financial worries in Europe.

BP made its first deposit of $3 billion into the newly created $20 billion escrow account to pay damages created by the Gulf of Mexico oil spill. 

A $2 billion deposit will be made in the fourth quarter of this year, with the company expecting to add $1.25 billion a quarter — or $5 billion a year — until all $20 billion has been deposited, BP announced Monday. 

BP had initially planned to make its first deposit at the end of the third quarter, which is the end of September. 

The company has sold recently almost $9 billion in assets to have cash on hand for the escrow account and other costs. 

"The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers," said Bob Dudley, chief executive of BP’s Gulf Coast Restoration Organization.