Bluebird Bio Ends Director Pay Challenge With Governance Pledge

Bluebird Bio Inc. has settled a shareholder lawsuit calling its director compensation “grossly excessive” with a series of governance changes and up to $500,000 in attorneys’ fees to the investor who brought the case, according to a Delaware Chancery Court filing.

If approved by Chancellor Andre G. Bouchard, the agreement will resolve claims that the gene therapy company’s $750,000 average director salary—allegedly more than three times the rate at companies with capitalization comparable to its $2.5 billion—amounts to self-dealing.

The deal includes a pledge that Bluebird’s average board salary won’t be in the top quartile of non-employee director pay at ...