# kaal:claim:5583610-032

**Claim.** Using LER to secure say-on-pay support falls within Delaware's business judgment rule, which presumes good faith board decisions absent self-dealing or gross negligence.

**Type.** condition  **Support.** argued

**Holds when.**

- executive compensation votes
- no self-dealing or gross negligence

**Source quote.**

> LER in executive compensation aligns with Delaware's business judgment rule, which presumes that boards act in good faith unless self-dealing or gross negligence is evident, as upheld in Aronson v. Lewis.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 7.4. Executive Compensation and Alignment, page 29

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Topics.** corporate-governance

**Keywords.** say-on-pay, business-judgment-rule, executive-compensation, aronson

**Related claims.**

- specializes: https://wulfkaal.github.io/claims/1558614-006

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