Coty Directors Dodge Shareholder’s Challenges to CEO’s Salary

A Coty Inc. shareholder’s suit challenging the compensation paid to the company’s chief executive officer and a proxy statement describing it was dismissed by a federal court.

Cathy Buch brought two claims, alleging the Delaware-based beauty products company violated the Securities Exchange Act of 1934 regarding allegedly deficient compensation-related disclosures in its public filings, as well as a shareholder derivative claim alleging breach of fiduciary duty by Coty’s board in setting compensation.

Buch neither established that she suffered an economic loss because of alleged misstatements in the proxy statement, nor that it would have been futile to bring her concerns ...