Covanta Ends Derivative Case With Compensation Disclosure Deal

Covanta Holding Corp.'s board has reached a noncash settlement in Delaware Chancery Court with a shareholder who accused its members of violating the waste management company’s bylaws by overpaying themselves.

The proposed agreement calls for yearly review of the board’s bylaw compliance, “prompt” disclosure of “any material changes to the bylaws,” public summaries of any director compensation changes, and annual reports stating how many meetings each board member attended.

The shareholder who brought the derivative case also reserves the right to seek attorneys’ fees and an incentive award, according to the court filing disclosing the deal.

The suit, filed ...