The Organisation for Economic Cooperation and Development announced last week that its 30 member governments had approved new guidelines on corporate governance. The principles would strengthen the rights of investors, noting—as the SEC is considering—that shareholders should be able to “participate effectively in the nomination and election” of directors. The new guidelines also state that […]
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Posted inBoards & Shareholders
Pension Funds Want To See More Green In MD&A
A group consisting of many of the nation’s largest institutional investors is stepping up its efforts to make a company’s environmental policies a mainstream corporate governance issue.. Their goal is for the Securities and Exchange Commission to clarify the importance of companies detailing their climate risk disclosure under existing disclosure rules regarding the Management’s Discussion […]
Posted inFrom the Archive
SOX Scam? Tell Finance To Look Out For Registry Bill
An outfit called the Federal Compliance Registry recently emerged on the Internet, offering a list of publicly traded companies that are “in compliance” with Sarbanes-Oxley. Companies pay the site $125 to be listed as compliant. Lawyers and financial officers who have encountered the site call it a scam. Nowhere does the site explain how it […]
Posted inFrom the Archive
The Critical Importance, and Changing Face, of Corporate Transparency
With so much current emphasis on popular buzz words, it’s easy for companies and investors to lose sight of exactly what’s meant when reference is made to “corporate governance.” For too many, the concept conjures up questions about the appropriate number of independent directors, the nature of various corporate committees, and the timing of shareholder […]
Posted inInternal Controls
SEC Mulling Some Relief On Internal Control Rules
The U.S. Securities and Exchange Commission is considering a move to relieve companies from having to assess the financial- reporting processes at certain previously off-balance-sheet entities, an SEC accounting official said.
Posted inEthics & Culture
Editorial: There Is No Connection Between Education And Ethical Behavior
The week this print edition went to press, Bloomberg had run yet another story drawing a line between business schools and high-profile ethics failures. Focusing on former Enron chief executive Jeff Skilling, who—the reporter went out of her way to mention—had an MBA from Harvard, the article also touched on the higher education and honorary […]
Posted inFrom the Archive
“Effective” Compliance Programs: The Sentencing Commission Speaks – Again
On April 13, 2004, the U.S. Sentencing Commission announced its new guidelines for obtaining mitigation credit for an effective compliance program. The new Guidelines go to Congress on May 1 and become effective November 1, 2004, absent Congressional intervention. The Introductory Commentary makes clear that the Commission intends its amendments to have a sweeping impact […]
Posted inInternal Controls
Weak Internal Controls Are Really “Worst Practices”
As a forensic accountant, my first contact with clients often occurs when they suspect they’ve been victimized by fraud; usually they’re right. Initially, my job is to determine the nature and extent of the theft, to identify the perpetrators and, if possible, to help them recover the loss. Most often, fraud victims are shocked and […]
Posted inFrom the Archive
Former IRS Commissioner Joins $13.8b Goodyear Board
Peterson Akron, Ohio-based tire maker Goodyear recently announced that Shirley Peterson had been appointed a director, bringing the company’s board membership to 11. Peterson is a former partner with Steptoe & Johnson in Washington, D.C., and also served as assistant attorney general, tax division, under Pres. George H.W. Bush. Pres. Bush later appointed her commissioner […]
Posted inFrom the Archive
Delta Finance Chief Resigns; Joins $6.4b Mirant Corp.
Burns $13.3 billion Atlanta-based Delta recently announced that its CFO, M. Michelle Burns, would resign to assume the same position with bankrupt energy trader Mirant Corp. Burns had served with Delta since 1999, and was previously a partner with Arthur Andersen, where she was in charge of the Southern Region Federal Tax Practice, and was […]