Boards of directors as well as shareholders should approve all profit-sharing plans. The board of directors should approve options to purchase stock. Corporations should not make loans to officers, directors and stockholders unless approved by the Board. Sounds like some of the new rules that have recently been instituted under Sarbanes-Oxley or the various stock […]
Stephen Taub
Posted inEthics & Culture
Market Reactions May Show Governance Changes May Be Working
Are investors regaining their trust in Corporate America roughly two years after Enron Corp.’s bankruptcy touched off a wave of corporate scandals? The Bounce-Back One case involved Per-Se Technologies, the provider of outsourcing services we told you about two weeks ago when it announced that an anonymous whistleblower sent a letter to several financial research […]
Posted inRegulatory Enforcement
Siebel Faces Possible Second Regulation FD Action
Siebel Systems could wind up having the dubious distinction of being the first company to twice violate the Securities and Exchange Commission’s three-year old rule regarding selectively disclosing key information. The software maker has revealed in a regulatory filing that the SEC may take enforcement action against the company and several officers for statements allegedly […]
Posted inFrom the Archive
Charting The Rise Of The Chief Governance Officer
Reflecting a growing trend, last week The Boeing Co. said it created a new Office of Internal Governance, reporting directly to Phil Condit, chairman and CEO. Boeing Senior Vice President Bonnie W. Soodik, currently president of Shared Services Group, will head up the new group. In her new role Soodik will have responsibility for: Internal […]
Posted inFrom the Archive
Whistleblower Activity On The Rise As Rule Date Nears
Where there is smoke there is fire. This is generally the case when whistle-blowers raise concerns about activities within their company. For this reason, last Tuesday, shares of Per-Se Technologies fell more than 15 percent on very heavy volume after the company revealed that it was informed about an anonymous letter sent to several financial […]
Posted inRegulatory Enforcement
Can A Possible Reg. FD Violation Turn Into An 8-K Breach?
Can a possible Reg FD violation turn into an 8-K breach? This is one of the questions surrounding AFC Enterprises, the fast food company that operates Cinnabon, Popeye’s and Church’s fried chicken. Last week, AFC filed its long-awaited 10-K for 2002, restating previously-reported earnings by $27.4 million over a three-year period due to what it […]