The much-publicized “global research analyst settlement” is rapidly reshaping the ways brokerage firms conduct business, with significant consequences for both public and pre-IPO companies. Under the global settlement, which was entered into in response to enforcement actions brought by a number of federal and state regulators, ten leading brokerage firms agreed to severely limit interactions […]
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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 […]
Posted inFrom the Archive
Sarbanes-Oxley Act: Hidden Shoals for the Unwary
Last year I began teaching my 16 year-old daughter to operate our 205 horsepower pleasure craft. During my newboater indoctrination sessions, in addition to covering requirements such as running the motor compartment exhaust fan for four minutes prior to starting the engine, operating the boat’s navigation lights and learning on-water navigation rules, I took Morgan […]
Posted inFrom the Archive
Survey Illustrates How Investment Pros Use Your Data
RESPONSES Most Important Statements Additional Info. Sources 1. Footnotes to Financials 2. Interim Financial Statements 3. Earnings Releases 4. Mgmt’s Discussion & Analysis 5. Conference Calls, Meetings SOURCE: AIMR A recent survey of nearly 2,000 analysts and portfolio managers that rated companies on the overall quality of financial reporting (they got a “C+” if you […]
Posted inBoards & Shareholders
Stacking The Board In The New Age Of Governance
The parties to a merger-of-equals (or a merger-with-an-almost-equal) often divvy up board seats in the merger agreement. Sometimes, the parties simply specify the initial allocation of board seats at the closing, other times the parties lock-in the board seat allocation for a period of time following the closing. The Bank of America/FleetBoston and Anthem/WellPoint deals […]
Posted inFrom the Archive
Review Of Controls, Auditor Top Executive Actions
Nearly three quarters of executives responding to a recent survey claim to have enhanced their internal controls over the past year. According to the survey, sponsored by Hill & Knowlton and recruitment firm Korn/Ferry International, 64 percent of respondents also claim to have reviewed their auditor and accounting relationships, and 55 percent have revised their […]
Posted inFrom the Archive
SEC Proposes Fund Subadviser and Short Sale Rules; Adopts Changes to Rule 10b-18
On Oct. 22, the Securities and Exchange Commission voted to amend Rule 10b-18 regarding “safe harbor,” and proposed related disclosure regulations. The Commission also voted to propose a new rule and rule amendments concerning shareholder approval of subadvisory arrangements at investment companies, and to propose new rules and rule amendments and issue an interpretive release […]
Posted inFrom the Archive
Parson Consulting 10-Q Reporting Study
Download results of Parson Consulting study, which noted 60 percent of S&P 500 companies aren’t yet meeting the shorter quarterly filing deadline of 40 days for 2004.
