The latest findings on CEO and director compensation show that total pay levels for both groups rose in 2004, confirming trends reported in other recent research. Median total compensation for CEOs at over 3,000 public companies in 2004 was higher than the year prior in all 14 industries surveyed, with the energy industry showing the […]
Melissa Klein Aguilar
Posted inFrom the Archive
Guidance Expected On SOX And Foreign Laws
U.S.-based multinational companies that have run into trouble trying to implement a provision of Sarbanes-Oxley that conflicts with French law are expected to get some guidance on the issue, according to securities experts. That should be welcome news for some companies that—while attempting to comply with certain provisions of SOX—have run afoul foreign laws. That […]
Posted inAccounting & Auditing
SEC Reiterates Non-Audit Services Position To Deloitte
In a recent no-action letter, the Securities and Exchange Commission said it was okay for a Deloitte & Touche member firm in the United Kingdom to sell actuarial software to SunGard, saying the deal wouldn’t trigger a violation of the SEC’s auditor independence rules. As most Compliance Week subscribers know, the Securities and Exchange Commission […]
Posted inFrom the Archive
At Age Five, Individual Trading Plans Hit Their Stride
Five years after the adoption of Securities and Exchange Commission Rule 10b5-1(c), public company executives’ use of individual trading plans finally appears to be taking off. Rule 10b5-1 trading plans, which were instituted in October 2000 along with Regulation Fair Disclosure, are programs for trading securities designed to gain the protections of Rule 10b5-1’s affirmative […]
Posted inAccounting & Auditing
Companies Look To “Rebalance” Internal Audit After SOX
More than three years after the passage of the Sarbanes-Oxley, members of the business community have shifted their focus toward balancing SOX activities with other business priorities. Internal audit has been one of the areas in which companies have sounded the call for getting back to basics. That’s because internal audit led the Year One […]
Posted inFrom the Archive
Rising CEO Pay Does Not Correlate To Increased Value
Pressure from institutional investors to rein in executive compensation and pay-related reforms—such as expanded disclosure requirements related to compensation, deferred compensation legislation, and new rules regarding the expensing of stock options—apparently have yet to translate into lower CEO pay at most public companies, according to a new report. On the contrary, the study—by governance watchdog […]
Posted inAccounting & Auditing
Business Models, Regulations Impacting “RevRec” Policies
With the goal of ensuring that companies are reporting accurate revenue numbers, it may not be surprising that Sarbanes-Oxley is causing public companies to carefully scrutinize their revenue recognition policies. But what is surprising is that SOX isn’t the primary cause of public companies’ revenue recognition related headaches, according to a recent survey. Indeed, more […]
Posted inInternal Controls
COSO Releases Draft Guidance For Smaller Companies
The Committee of Sponsoring Organizations of the Treadway Commission has finally published for comment its long-awaited draft of guidance for smaller public companies on using its framework to address the internal control provisions Sarbanes-Oxley. For months, companies and regulators have been anxiously awaiting the 207-page guidance, which was finally issued last week. Its expected arrival […]
Posted inFrom the Archive
Earnings Guidance Getting Conservative?
Two-of-three companies on Standard & Poor’s 500 roster have exceeded analysts’ per-share expectations consistently since the first quarter of 2004, suggesting companies are extremely conservative in their earnings guidance to analysts and then over-deliver on results. That’s according to a study by Chicago-based Parson Consulting of earnings-per-share projections and actual earnings results. Noting that nearly […]
Posted inBoards & Shareholders
NYSE Proposal Would Clarify Independence Disclosures
The New York Stock Exchange plans to file a rule change with the Securities and Exchange Commission either this week or next week to clarify disclosure requirements related to the independence of board directors, NYSE officials said. The Exchange is also considering an indicator that would flag companies that are out of compliance with its […]