May 24, 2021
Agenda – What to Know Before Joining a SPAC Board
Directors can receive a hefty windfall for taking a seat on a Special-Purpose Acquisition Company (SPAC) board, and such appointments present new and interesting challenges for a seasoned director. However, sources say it’s important to weigh the attendant risks before getting involved.
In the past year, for example, litigation involving SPAC directors has soared, and SEC scrutiny of the transactions has also ramped up along with the popularity of the vehicles. Proxy advisory Institutional Shareholder Services has also noted that given their time demands, it will count SPAC board seats when weighing whether a director should be considered overboarded.