Friday, October 29, 2004

SOX Study Uncovers More Changes in the Boardroom

Two years after the introduction of the Sarbanes-Oxley Act of 2002, corporate reform continues to impact corporate directors, according to a recent study by Corporate Board Member magazine and PricewaterhouseCoopers LLP.

The survey asked directors how much time -- more, the same, or less -- they think their boards should devote to 14 different subjects. Strategic planning was the number one action item, with 58 percent of respondents saying they'd like more time to discuss it. The other top responses were succession planning, meeting key managers, visiting work sites, and discussing the competition. While executive compensation and governance are hot topics in the press today, only 17 percent of respondents thought their boards need to spend more time on compensation issues, and only 11 percent said they should devote more time to governance guidelines. Last on the list of board priorities was compliance and regulatory issues, with only eight percent of respondents saying they want to discuss these issues at any greater length.

Even with Section 404 looming, confidence is increasing. Eighty-two percent of directors believe their company is prepared to implement Section 404 on internal control reporting. However, only 50 percent of directors surveyed think Section 404 internal control reporting requirements will make a difference in the quality of their company's financial statements; and less than half (44 percent ) think Section 302 certification of financial statements by the CEO and CFO will make a difference.

SOX Study Uncovers More Changes in the Boardroom

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