Sentencing Commission Envisions Stronger CCO

The U.S. Sentencing Commission has proposed revising the Federal Sentencing Guidelines, with a strong compliance officer who answers directly to the board of directors at the center of its vision. Toby Vick of the law firm McGuireWoods, says companies should pay heed to how their compliance programs may need to change, in both structure and substance.

Text of SEC Climate-Change Guidance Released Quickly

The SEC has published its controversial guidance on disclosing climate-change risks, giving companies a fresh set of concerns to incorporate into the annual report just as proxy season starts. “Companies need to think through the risks very deliberately in the areas outlined in the release,” says Liz Logan, a partner at PricewaterhouseCoopers. More inside.

Report: Policy Management
in Need of Improvement

A new study finds that companies are still struggling with their policy-management efforts. Two particular concerns straining compliance programs are the pressure to “do more with less” and the practice by many companies to manage their corporate policies in silos, says Robert Kirtley, managing director at Duff & Phelps, which conducted the study.

Case Study: ACS Conquers Identity Management

For Affiliated Computer Services, an IT outsourcing firm that does business in 100 countries, identity management was not only a compliance concern, but a business risk and productivity drain as well. Inside is a step-by-step look at how the company implemented a new ID management system to solve its problems.

Risk Resolutions Gain Steam

Shareholder activists are starting to pepper corporations with questions about CEO succession and risk assessments, now that a new SEC policy paves the way to let such resolutions on the proxy statement. “This will definitely be a notable year for these proposals,” says Carol Bowie, head of the Governance Institute at RiskMetrics Group.

Talking Tips With the SEC

One of the SEC’s many promised reforms was a new “Office of Market Intelligence” to handle the thousands of tips, complaints and referrals the agency receives annually. This week, Compliance Week Columnist Bruce Carton chats with Thomas Sporkin, head of the OMI, to hear more about what the office will do and how it will work.

The Desires, Fears of Investors

Compliance Week Columnists Stephen Davis and Jon Lukomnik discuss the SEC’s new disclosure rules for director nominees, and what it expects of companies. Also inside: a discussion of the fears investors have over the Citizens United ruling, allowing unlimited corporate spending on direct political speech.

Schapiro Outlines SEC Plans

SEC Chairman Mary Schapiro warned last week that the Commission plans plenty more rulemaking and enforcement actions in the months ahead to address fallout from the financial crisis. Appearing at the annual “SEC Speaks” conference, she gave attendees a wide-ranging review of what the SEC has done in the last year and what will come next.

A Power Tilt to Compliance

Slowly but surely, signs are emerging that federal regulators and other influential voices in corporate governance want a company’s top compliance officer to report straight to the CEO or the board. But CCOs shouldn’t jump for joy just yet, Compliance Week Editor Matt Kelly writes—collecting more power for compliance could carry its own risks.

BAE’s Landmark Settlement

British arms company BAE Systems has agreed to pay $450 million in fines in Britain and the United States to end a long-running investigation into alleged bribery and corruption. Most of that money will go to the United States, but most of the headlines about a renewed crackdown on bribery are happening in London. Details inside.

Barney Frank: Cos. Should Reveal Top Non-Exec Pay

Amid fury over bank bonus pay, U.S. Rep. Barney Frank, chairman of the House Financial Services Committee, is urging the SEC to require public companies to disclose the salaries of their top-paid employees who aren’t senior executives. The proposal would potentially force Wall Street firms to reveal the earnings of their top traders and money managers. More details inside.

Podcast: Effective Clawback Provisions for Executive Pay

In this week’s podcast, Compliance Week Editor Matt Kelly talks with Scott Landau of the law firm Pillsbury Winthrop Shaw about how to craft effective, practical clawback policies for executive compensation agreements. Hear it now.

FASB, IASB Converge on New Ways for Explaining Income

FASB and the International Accounting Standards Board at a joint meeting have reached some key agreements toward finalizing a proposed new approach for explaining income information to investors. Details on those key agreements are inside.

SEC May Get Budget Increase

A congressional report, posted on the SEC’s Website, notes that the President’s proposed $1.258 billion fiscal year 2011 budget for the Commission would increase its funding by roughly $139 million over last year’s budget and enable the SEC to add about 380 staff positions. Details inside.