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 Longtime Deal contributor Joseph W. Bartlett (Fish & Richardson) began 2008 examining both sides of private equity.In part one of his exclusive column for TheDeal.com, Bartlett details the movements poised to permanently disrupt the momentum of private equity: Witness the decibel level of media criticism, fueled in part by reports of the perfectly extraordinary amounts of money the principals of buyout funds took home last year. And factor in a Democratic Congress, the members of which are concerned with typical Democratic issues ... including the widening gap between the rich and the middle class-poor in this country. In part two, Bartlett takes the opposing view, arguing that efforts to limit PE have been excessive: the post-Enron pendulum has swung way too far. The country is in need of (i) serious tort reform to level the playing field and take away the power of creative and predatory plaintiffs' lawyers to impose a tax on public companies (and IPOs) in this country when and as any hiccup appears in their financial performance; (ii) a new model to square away executive compensation so that the "activists" whom Lipton (rightly in my view) deplores will not be empowered to use CEO salary and benefits to help them initiate and pursue guerilla warfare against public companies ... looking to create enough turmoil in the market place from which the activists, aka privateers, can profit one way or another; and (iii) a roll back of well-meaning but numbskull rule making ... not SOX, incidentally, but IRC §409A and FAS 157. Read the Jan. 8 column from TheDeal.com CategoriesPrivate capital video
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