Organizational culture and workplace practices are under heightened scrutiny, with increased focus from regulators and other stakeholders to ensure a culture of compliance from the top down. Employees are also increasingly seeking alignment with their employers on issues like sustainability and pay equity. Employment and human capital management matters once considered outside the purview of the boardroom are now a critical part of board oversight. Ensuring employment policies and practices are custom fit for an organization and legally compliant are fundamental components of a comprehensive and effective risk reduction compliance program and being prepared to act swiftly in the event of a workplace challenge are paramount to mitigating enterprise-level risks.

Shearman & Sterling’s multidisciplinary Workplace Advisory & Investigations team is experienced in advising boards and management teams on proper oversight of employment and human capital policies and programs, including comprehensive risk reviews, crisis management action plans, workplace and culture investigations, and responding to regulatory or criminal inquiries and whistleblower allegations. We recognize the complex and highly sensitive nature of internal investigations and the need for both a swift and thoughtful process when a complicated situation arises. Our lawyers, including former federal prosecutors, are experienced in handling regulatory or criminal inquiries, as well as dispute resolution through mediation and litigation. Our advice is informed by our clients’ immediate needs and long-term goals, with an eye toward best governance practices and minimizing adverse reputational risk.

We are trusted advisors to some of the world’s leading corporations and financial institutions and their boards and senior management, empowering them to make well-informed, strategic decisions to navigate situations, prevent regulatory penalties, and minimize legal and reputational risks.

Our capabilities include:

• Advising boards and their committees on the oversight of employment policies
• Advising special independent board committees in connection with internal investigations
• Advising on and designing compliance-based compensation incentives
• Advising on high-profile executive and other employee transitions, including separations in connection with discrimination and other misconduct allegations
• Counseling on corporate governance related issues, including implementation of emergency succession protocols, advice regarding leadership transitions and new appointments, and related internal and external disclosures
• Advising on the design and implementation of clawback policies and the recoupment of compensation
• Counseling on the use of AI in the workplace, including with respect to hiring practices
• Advising companies and financial institutions in responding to whistleblower allegations, and conducting investigations of whistleblower allegations, including in the context of significant examinations by the DOJ, SEC, and other regulators
• Responding to employee complaints of misconduct, harassment and discrimination
• Analyzing the legality of employment practices, including with respect to restrictive covenants
• Advising on the development of proper supervision systems for employees and external agent/contractor organizations

RELATED PRACTICES

Antitrust
Compensation, Governance & ERISA
Financial Institutions Advisory & Financial Regulatory
Litigation
Privacy & Data Protection
White Collar Defense & Investigations

• Represented the Special Investigative Committee of the Board of JP Morgan in connection with the “London Whale” investigation and report
• Represented the independent directors of Wells Fargo in connection with the investigation of its retail banking scandal
• Conducted numerous internal accountability reviews on topics including escalation, supervision, reporting lines, culture, and controls
• Led multiple root cause investigations into corporate culture for numerous publicly traded companies and financial institutions, and advised on corporate culture remediation
• Performed investigation into allegations of gender and religious discrimination for public and private companies
• Led multiple investigations into alleged executive malfeasance and harassment on behalf of audit committees and boards of private and public companies
• Performed investigation into allegation of wage discrimination and advised on best practices for wage determinations
• Conducted investigation into allegations of religious, gender, and age discrimination on behalf of Texas state agency and achieved favorable settlement with claimant
• Spearheaded investigation into whistleblower allegations regarding alleged viewpoint discrimination and harassment on behalf of publicly traded manufacturing company
• Provided oversight of several internal investigations into workplace relationship allegations involving relationships between company executives
• Led internal investigation into allegations that a bank’s senior management failed to follow whistleblower policies and procedures
• Advised board of directors on General Counsel’s conflicts of interest arising from the GC’s spouse’s employment
• Investigated whistleblower’s allegation that Fortune 50 regional general counsel had significant conflicts of interest in the selection of outside counsel
• In response to media coverage, conducted independent investigation at the request of US Olympic and Paralympic Committee of a coach’s racist remarks and racial preferences in the selection of Olympic team
• As publicly announced by US Rowing and the US Olympic and Paralympic Committee, undertook year-long independent investigation of allegations of sexual assault and harassment of athletes by Olympic coach and publish investigative report
• For a global Fortune 10 company, evaluated all aspects of existing compliance system worldwide to assist in adoption of centralized compliance functions and best practice encompassing HR, corporate security and investigations, legal, and IT forensics departments
• In response to shareholder lawsuit, advised the special board committee of Madison Square Garden in evaluating whether executive chairman and CEO James Dolan’s compensation was inappropriate
• Represented an independent board committee in responding to DOJ criminal investigation into whether CEO and board member conspired to violate US export control laws

RELATED PRACTICES

Antitrust
Compensation, Governance & ERISA
Financial Institutions Advisory & Financial Regulatory
Litigation
Privacy & Data Protection
White Collar Defense & Investigations