Individual Accountability & Yates Memorandum

Yates has been an important consideration for corporate boards, which as a fiduciary obligation should give close consideration to seeking cooperation credit when responding to a governmental investigation. It has also served to spark the current environment that places increasing emphasis on individual accountability for corporate misconduct or harm. However, the “all-or-nothing” approach of Yates (as the Chamber describes it) could significantly complicate the board’s decision-making. The Audit & Compliance Committee would be an appropriate venue for a governance-based discussion of Yates’ implications and the Chamber’s report. This discussion would logically be led by the general counsel and the corporation’s outside white collar counsel.