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Taking Employment Contracts Seriously, Matthew T. Bodie
Taking Employment Contracts Seriously, Matthew T. Bodie
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The essay, written for the Symposium in Honor of the Work of Charles A. Sullivan, examines the honoree's work on the employment contract. Rather than quickly moving past the common law of contract onto the many statutory regimes governing the workplace, Sullivan has repeatedly explored the nature of the employment agreement and the role of common-law doctrines in regulating this relationship. The essay explores Sullivan's expeditions into the common law and compares his work with those scholars working in the private law and New Private Law traditions. In addition, I argue that the contractual approach has failed to appreciate the …
Questions About The Efficiency Of Employment Arbitration Agreements, Matthew T. Bodie
Questions About The Efficiency Of Employment Arbitration Agreements, Matthew T. Bodie
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The growing popularity of arbitration agreements is well-documented. The academic literature on these agreements has been largely critical, arguing that they jeopardize important rights and enable employers to take unfair advantage of employees and consumers. However, standard economic analysis suggests that since these agreements are freely negotiated, they presumably increase the utility of both parties and are therefore efficient. This Article raises questions about the efficiency of such agreements in the employment context. It begins by modeling the decision-making process by which a rational employee would judge the desirability of an agreement, both after and before a dispute has arisen. …
Questions About The Efficiency Of Employment Arbitration Agreements, Matthew T. Bodie
Questions About The Efficiency Of Employment Arbitration Agreements, Matthew T. Bodie
All Faculty Scholarship
The growing popularity of arbitration agreements is well-documented. The academic literature on these agreements has been largely critical, arguing that they jeopardize important rights and enable employers to take unfair advantage of employees and consumers. However, standard economic analysis suggests that since these agreements are freely negotiated, they presumably increase the utility of both parties and are therefore efficient. This Article raises questions about the efficiency of such agreements in the employment context. It begins by modeling the decision-making process by which a rational employee would judge the desirability of an agreement, both after and before a dispute has arisen. …
Aligning Incentives With Equity: Employee Stock Options And Rule 10b-5, Matthew T. Bodie
Aligning Incentives With Equity: Employee Stock Options And Rule 10b-5, Matthew T. Bodie
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When the Internet boom was in full swing and the stock markets skyrocketed to new levels, companies new and old used stock options to attract and retain employees. Implicit in those options was the promise that employees could participate in the growth of a company's value. However, as the scandals involving WorldCom, Enron, and Global Crossing demonstrate, corporate managers were not always honest with employees or public investors about the company's true value. Public investors can seek civil remedies for securities fraud through a private action under the Securities and Exchange Commission's Rule 10b-5. The Rule's purchase or sale requirement, …