As an example, a director for Disney was let go after 14 months of work with about $150MM in compensation, more than his entire employment contract. In Brehm v. Eisner, a Delaware Supreme Court decision from 2000,Brehm v. Eisner, 746 A. 2d 244 (Del. 2000) the Court found that the Business Judgment Rule shielded the Board, which the Court found to have exercised bad business judgment, since it essentially complied with the Van Gorkom procedural requirement of informing themselves via an expert before approving the severance package. Thus the rule seems to protect even terrible business decisions from judicial review.
