In order to enhance the quality of reporting and increase investor confidence, Section 404 of the Sarbanes-Oxley Act requires that annual reports filed with the SEC must be accompanied by a statement by company management that management is responsible for creating and maintaining adequate internal controls. Management must also present its assessment of the effectiveness […]
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Posted inFrom the Archive
Economists: Expense Options, Repeal Related Tax Law
Statement from the Financial Economists Roundtable recommending treating stock options as an expense, and repealing a related IRS tax law.
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
Cash Flow, Investor Returns To Determine GE CEO Pay
On Sept. 17, General Electric said its compensation committee had awarded Chairman Jeff Immelt with a new form a performance-based stock units that would convert to GE stock after five years if certain goals had been met. RELATED STATEMENT From GE Compensation Committee Chair Andrew Sigler: “The goals of our executive compensation strategy are to […]
Posted inFrom the Archive
IRS And States To Cooperate On Abusive Tax Shelters
On Sept. 16, the Internal Revenue Service and state tax officials announced the establishment of a nationwide partnership to combat “abusive tax avoidance.” Forty states (see below) and the District of Columbia joined the IRS today in announcing the agreements, and more states are expected to sign the agreement in the weeks ahead. Under the […]
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 inAccounting & Auditing
Everything You Wanted To Know About Revenue Leakage
Not long ago, when shareholder value seemed to be exploding in every sector, companies were too busy counting revenue to focus on leaks in the stream. But, as we have all learned too well, success can breed complacency — and bad habits. Many companies, flush with boom times, took their eye off the ball. They […]
Posted inBoards & Shareholders
Study Holds Wealth Of Information On Board Practices
Korn/Ferry International, one of the world’s largest executive recruitment firms, recently published its 30th Annual Board of Directors Study, which is packed with interesting information on board trends and practices. Some expected changes are charted at right, but the study also charted board composition and compensation practices in great detail, comparing U.S. practices with those […]
Posted inFrom the Archive
What Does The SEC Look For? Games Against Time
In today’s heightened regulatory environment, what are common flags the SEC looks for that might indicate problems? We addressed these and other questions with Vinson & Elkins partner Rick Sauer, a former Assistant Director with the SEC’s Division of Enforcement. COMMON FLAGS One of the weaknesses of GAAP is that, by itself, it can’t necessarily […]
