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. Three years ago you were named Altria’s first chief compliance officer. What was the first order of business? The mission […]
CW Subscriber Only
Posted inRegulatory Enforcement
Severance Packages, Bonuses Under Assault
O Refund! Refund!” That’s the growing cry among shareholders and boards of directors, who are seeking the return of some or all of the bonuses—or a reduction in severance pay—of executives at companies whose stocks have collapsed in recent years. However, last week’s ruling by a federal judge that a government agency cannot withhold $60 […]
Posted inFrom the Archive
Study Finds Reg. FD Hurts Small Companies Most
A trio of Wharton professors has published a paper asserting that Regulation Fair Disclosure has caused an increase in the cost of capital for small companies. “We find that the adoption of Reg. FD caused a significant reallocation of information-producing resources, resulting in a welfare loss for small firms, which now face a higher cost […]
Posted inRegulatory Enforcement
SWAT Teams Assisting Companies In Electronic Discovery
In the Security and Exchange Commission’s now-famous “Statement on the Relationship of Cooperation to Agency Enforcement Decisions,” the Commission outlined criteria it would consider when determining how much to credit firms for “self-policing, self-reporting, remediation and cooperation.” According to the statement, cooperative behavior actions by companies could result in reduced charges, lighter sanctions, mitigating language […]
Posted inFrom the Archive
Regulation Fair Disclosure, Information, And The Cost Of Capital
Study by three Wharton professors finds that the adoption of Reg FD caused a “significant reallocation of information-producing resources,” resulting in a welfare loss for small companies that subsequently face higher costs of capital.
Posted inEthics & Culture
Editorial: Ethics Is Not Enough; The Logic Of Appropriateness
My son has proved for me the theory of evolution. He’s basically a barbarian with a cuter haircut. Never is that more apparent than when he’s eating. Fingers in his food. Mouth packed with Cheerios. Spoon banging on the tray. Snout submerged in his bowl. Hands wiped on his shirt. Face encrusted. The floor coated. […]
Posted inBoards & Shareholders
Amendments to NYSE Governance Listing Standards
Corporate governance amendments proposed by the NYSE on August 3, 2004, which slightly slightly amend listing standards on issues of independence, compensation agreements, the definition of “executive officer,” and other items.
Posted inAccounting & Auditing
PCAOB Issues Long-Awaited Report On Big Four
The Public Company Accounting Oversight Board has completed its first-ever inspections of The Big Four accounting firms, and the results—though not a surprise—are not exactly pretty. Though PCAOB Chairman William McDonough went out of his way to praise the firms for their cooperation and noted that “none of our findings has shaken our belief that […]
Posted inAccounting & Auditing
What Happened To Regulation G?
What happened to Regulation G, the SEC rule intended to stop companies touting EBABS, or “Earnings Before All The Bad Stuff?” The regulation, adopted in January 2003, applies whenever a company publicly discloses a non-GAAP financial measure. All such disclosures must include a quantitative reconciliation of the differences “between the non-GAAP financial measure presented and […]
Posted inAccounting & Auditing
SEC Approves PCAOB Standard For Audit Documentation
Last week, the SEC finally approved the Public Company Accounting Oversight Board’s rule setting standards for the preparation and retention of documentation in connection with audit engagements. The rule, promulgated by Sarbanes-Oxley after the infamous Andersen shredding incident, mandates that accountants reviewing the books of public companies maintain the audit records for seven years. The […]
