Trust Digest 68 (October 16, 2014)


Holder: No Defendant Will Forego Right to ‘Able Representation’
The No. 2 Justice Department official told federal prosecutors Tuesday that they should no longer ask criminal defendants who plead guilty to waive their right to later challenge their conviction on the grounds that their lawyers gave them bad legal advice. James Cole, the deputy attorney general, said in a memorandum that while the department believes such waivers are “both legal and ethical,” the policy change is aimed at promoting consistency among the 94 U.S. attorneys’ offices, about a third of which seek waivers of future claims that include ineffective assistance of counsel.
Key Words: US DOJ, Right of Counsel
Trust Issues: Integrity, Benevolence


When the Guy Making Your Sandwich Has a Noncompete Clause
If you are a chief executive of a large company, you very likely have a noncompete clause in your contract, preventing you from jumping ship for a competitor until some period has elapsed. Likewise if you are a top engineer or product designer, holding your company’s most valuable intellectual property between your ears. And you also probably have a noncompete agreement if you assemble sandwiches at Jimmy John’s sub sandwich chain for a living.
Key Words: Noncompete Clauses, Jimmy Johns, Employment Law
Trust Issues: Benevolence, Alignment of Interests


McDonald’s Takes on Critics in (Near) Real Time
Ever wondered where the meat in your Big Mac comes from? Maybe you want to know just what, exactly, is so special about its “special sauce.” Now you can directly ask the chain yourself. Today, McDonald’s USA is making a formal attempt to answer those with “Our Food. Your Questions,” an extension of a campaign that has already run in Canada and Australia. The U.S. effort is ostensibly meant to give customers a deeper look at how the brand makes and sources its food. To that end, it’s teaming up with “Mythbusters” host Grant Imahara to create a series of short films that will visit McDonald’s factories, farms and restaurants.
Key Words: McDonald's, Media, Brands
Trust Issues: Transparency, Capability


Darden Board Ouster: A Warning to Corporate America
The ouster of the entire 12-person board of directors last week at Darden Restaurants could trigger alarm bells at other companies where executives have ignored the demands of increasingly vocal shareholders, corporate governance experts say. "It's a warning that you've got to take into account the concerns of shareholders," said Charles Elson, professor of finance and director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. "There's an election process and this can happen again—at any company."
Key Words: Darden, Boards, Investors
Trust Issues: Alignment of Interests, Capability, Transparency


Mark Zuckerberg Is Giving $25 Million To Fight Ebola
Earlier this morning, Mark Zuckerberg and his wife Priscilla Chan announced plans to donate $25 million to the Centers for Disease Control Foundation to help fight Ebola. “The Ebola epidemic is at a critical turning point. It has infected 8,400 people so far, but it is spreading very quickly and projections suggest it could infect 1 million people or more over the next several months if not addressed,” Zuckerberg said in a statement posted to his Facebook page. “We need to get Ebola under control in the near term so that it doesn’t spread further and become a long term global health crisis that we end up fighting for decades at large scale, like HIV or polio.” The Facebook CEO also called out the heroic work of the frontline responders.
Key Words: Zuckerberg, Facebook, Philanthropy, Ebola
Trust Issues: Benevolence


Ireland Phases Out Tax Break as Overseas Pressure Mounts
Ireland’s government will phase out a tax shelter used by U.S. companies from Google Inc. (GOOG) to LinkedIn Corp. (LNKD), amid mounting pressure from international authorities. The “Double Irish,” which allows companies to avoid paying tax on much of their income, will be closed to new entrants from January, Finance Minister Michael Noonan said in parliament in Dublin today, as he laid out the 2015 budget. Companies already enjoying the tax break can continue to do so until 2020.
Key Words: Ireland, Tax Law, Inversion, "Double Irish"
Trust Issues: Alignment of Interests, Transparency, Regulation


SEC Turning Insider Trading Fight ‘Upside Down,’ Lawyer Says
A top official at the Securities and Exchange Commission on Tuesday said the agency is trying new technology to fight insider trading. Daniel Hawke, chief of the market abuse unit at the SEC, told the Securities Enforcement Forum at the Four Seasons Hotel the agency is taking a trader-based approach to surveillance. “The way is to turn the approach upside down in a way that would reveal relationships,” Hawke said, adding that they look at the relationships and investments of traders. He said new database software has helped the agency find connections between people.
Key Words: SEC, Insider Trading
Trust Issues: Regulation, Capability


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