Audio – Options scandal may prevent SOX reform
The fallout from the options backdating scandal may stop politicians from amending the Sarbanes-Oxley corporate reform law, a top venture capitalist said. Allen Morgan, a managing director of Silicon Valley’s Mayfield Fund, said that he is now pessimistic about the law being changed after the November elections.
“My fear is that the technology industry has inadvertently shot itself in the foot with all of the options backdating scandals,” he told the Reuters Venture Capital Summit.
Morgan said that the law was “the typical politicians’ response to a bad situation,” and the costs of complying had become a huge impediment for smaller companies.