08 Mar MANAGEMENT EXPERT WITNESS TESTIMONY: TESTIFYING BUSINESS CONSULTANT FOR LAW FIRMS
A management expert witness testimony provider is a testifying consultant with expertise in business operations, leadership, and organizational practices. Advisors weigh in on matters concerning organization practices, corporate governance, decision-making, and other business-related issues that best management expert witness picks cover.
- Corporate Governance and Fiduciary Duties
- Trend: Increasing scrutiny on corporate governance practices, especially following high-profile corporate scandals and failures, has led to a heightened focus on the fiduciary duties of executives and board members. Legal disputes arise concerning whether management upheld their legal obligations to the company, shareholders, or other stakeholders.
- Expert Testimony: The best management expert witnesses assess whether executive teams acted in the best interest of the company and its shareholders. SMEs could evaluate whether board members and executives adhered to proper governance standards, such as transparency, accountability, and due diligence in their decision-making. The expert would also review whether management properly fulfilled fiduciary duties like loyalty, care, and good faith, especially in cases involving shareholder disputes, corporate malfeasance, or breach of duty.
- Executive Compensation and Employment Disputes
- Trend: As executive compensation packages grow more complex, issues related to fairness, performance metrics, and compliance with compensation regulations have become a common source of legal disputes. That includes disputes over bonuses, stock options, severance packages, and whether compensation is aligned with company performance.
- Expert Testimony: A management expert witness evaluates the structure of executive compensation packages in light of industry standards, the company’s performance, and shareholder expectations. Consultants can provide insight into whether the compensation is excessive or appropriately tied to performance metrics. Pros also address whether executive compensation plans comply with regulations or are consistent with best practices, such as those outlined by the Securities and Exchange Commission (SEC) or other regulatory bodies.
- Management of Employment Practices and Labor Laws
- Trend: Disputes involving employee relations, wrongful termination, discrimination, harassment, and wage-and-hour violations are common in both the private and public sectors. Management’s responsibility in ensuring legal compliance with labor laws and providing a safe, fair working environment is increasingly scrutinized.
- Expert Testimony: By proxy, your average management expert witness could be asked to assess whether management’s employment practices adhered to labor laws, such as the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, or the Americans with Disabilities Act (ADA). KOLs would review policies, procedures, and decisions made by management, such as hiring, firing, promotions, and disciplinary actions, to determine if they were compliant with employment laws. The expert could also analyze how well management created and maintained a workplace culture that prevents discrimination and harassment.
