Last week, a joint international forum that was established to address banking and securities issues published guidance for financial services companies related to outsourcing. The Joint Forum, established in 1996, includes the International Organization of Securities Commissions, the Basel Committee on Banking Supervision, and the International Association of Insurance Supervisors. The report includes a set […]
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Posted inFrom the Archive
Over-Disclosure: Companies Look To Differentiate Themselves
The traditional disclosure tug-of-war, in which legal and investor relations executives at public companies tussle over how much information to share with the investment community, is slowly getting pulled in the direction of “over-disclosure.” That’s according to several experts and executives involved in the disclosure process, who claim that companies are attempting to differentiate themselves […]
Posted inInternal Controls
Q&A With EVP, CFO Of $1.4 Billion PSS World Medical
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. Rumor has it you printed T-shirts for your Section 404 project team. True? We did. One of the fun parts […]
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Severance Packages Starting To Come Under Attack
In one sense, it still looks like business as usual when it comes to executives hauling in huge severance packages. For example, Wallace D. Malone Jr., the chief executive officer of SouthTrust Corp., is entitled to $59 million in termination awards, stock awards, and options over the next five years if he leaves the Birmingham-based […]
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8-K Rule Effective Next Week; Rule Delay Rumors Abound
On Aug. 23, the SEC’s accelerated 8-K amendments become effective. On that date, the number and type of events required to be reported on Form 8-K will expand significantly—as will the amount of attention and effort that public companies must devote to their Form 8-K reporting obligations. The amendments also shorten the filing deadline for […]
Posted inInternal Controls
Compliance With Section 404 Costing More Than Expected
According to a recent study conducted by Financial Executives International, complying with Section 404 of The Sarbanes-Oxley Act will cost public companies over 60 percent more than previously anticipated. The study, which surveyed 224 public companies with average revenues of $2.5 billion, pegged the total cost of “year one” compliance at $3.14 million. That’s a […]
Posted inFrom the Archive
Cumulative Voting Disappearing In Governance Trade-Off
Back in June, Energy East agreed to declassify its board of directors, thus ending the staggered terms. Was this yet another case of a company voluntarily practicing good governance in this Sarbanes-Oxley world? Sort of. Because while it declassified its board, at the same time the company discontinued its practice of allowing cumulative voting of […]
Posted inAccounting & Auditing
Five Worst Practices To Avoid When Handling Restatements
Many compliance officers and in-house counsel are aware of the important steps they need to follow in order to assess a potential financial restatement and implement a comprehensive strategy for managing the restatement. It is perhaps equally instructive, however, to study the more egregious mistakes that others have made in the face of a restatement […]
Posted inInternal Controls
36 Internal Control Disclosures In July
SECTION 404 The July Data View The Actual Internal Control Disclosures From July View Sample Disclosures Of Remediation Efforts From July According to a review of regulatory filings during the month of July, 36 companies disclosed material weaknesses or significant deficiencies in internal controls, or provided material updates on the status of their control-improvement processes. […]
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$21.4b EDS Names EVP, Secretary, General Counsel
Plano, Texas-based IT services company EDS announced that former Sprint EVP and chief staff officer Bruce Hawthorne would take over the duties of EVP, secretary and general counsel from Gil Friedlander, who will return to private practice. Hawthorne Hawthorne will direct EDS’ global legal operations, and will lead the company’s Office of Ethics and Business […]
