Compensation committees are increasingly using so-called “tally sheets”—also called “total awards” by some—to get a better handle on exactly how much money top executives and other employees are costing their companies. The tally sheets are not exactly a sophisticated exercise drawing on complex computer programs; rather, they typically require the scorekeepers to “tally” the total […]
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Posted inBoards & Shareholders
Institutional Investors’ Perspective: Priorities For ’05
Remember the old days when corporate executives stood astride the known world, masters of markets? Today, with fetters such as Sarbanes-Oxley, residents of the C-suite feel they are doing something closer to dancing atop a basketball. To help keep your balance, here’s an early warning signal of the top 10 issues coming your way in […]
Posted inInternal Controls
582 Weakness, Deficiency Disclosures Made In ’04
THE FILINGS The Disclosures View The Actual Weakness, Deficiency Disclosures Made During December According to a review of regulatory filings, 56 companies disclosed material weaknesses or significant deficiencies in internal controls during the month of December 2004. During the same month in 2003, only 14 companies made such disclosures. The December data bring the total […]
Posted inFrom the Archive
Importance Of Qualitative Factors Risk Management
Comments by Federal Reserve Board governor Susan Schmidt Bies on “recognizing the importance of qualitative factors in an effective risk management process.” Argues that risk managers should, “encourage continuous improvement in all aspects, including data integrity, legal clarity, transparent disclosures, and internal controls.”
Posted inFrom the Archive
FASB Expensing Rule Impacting Other Equity Awards
When The Financial Accounting Standards Board last month delivered its final statement on share-based payments, most news accounts focused on the impact on stock options, which now must be expensed in the first annual reporting period beginning after June 15, 2005. Generally overlooked, however, is how the new standard—officially called Statement No. 123: Share-Based Payment—might […]
Posted inFrom the Archive
A Guide To Governance Ratings Services
GOVERNANCE RATERS Audit Integrity The Corporate Library Governance Metrics International Institutional Shareholder Services (ISS) Investor Responsibility Research Center Over the past year, Compliance Week has published numerous stories about governance ratings firms, including one a few weeks ago in which we questioned those firms’ ability to predict problems at Marsh & McLennan and other insurance […]
Posted inInternal Controls
Q&A With Genworth Financial’s SVP & Chief Risk Officer
This profile is the latest in a series of weekly conversations with executives at U.S. public companies who are currently involved in establishing and developing compliance programs. An index of previous conversations is available here. Tell us about your role as chief risk officer. What’s in your job description? Risk management is a function at […]
Posted inFrom the Archive
New Risks As Cos. Hire Counsel To Investigate Fraud
A recent report that the Securities and Exchange Commission may sue a company’s outside lawyer for his role in an internal investigation has put renewed emphasis on the role and risks of “gatekeepers” in the post-Sarbanes-Oxley era. The move comes as corporate boards and committees are increasingly hiring outside lawyers to investigate accusations of fraud […]
Posted inBoards & Shareholders
Activists On Defensive, But No Step Back For Governance
According to press reports, a series of recent, unrelated events may deal a big blow to the activist investor movement. In just the past few weeks, Sean Harrigan was ousted as president of the California Public Employees’ Retirement System; Roy Disney and Stanley Gold decided not to further pursue their aggressive tactics toward Walt Disney; […]
Posted inInternal Controls
SEC Committee To Study Impact Of SOX On Small Cos.
The Securities and Exchange Commission announced Dec. 16 the creation of an advisory panel to examine the impact of The Sarbanes-Oxley Act and other securities laws on smaller public companies. The move is part of an initiative to alleviate the regulatory burden on small issuers—one that has been gaining momentum in recent months at the […]
