Exclusive outtakes from industry leaders
Roel Campos, a Democratic commissioner on the U.S. Securities and Exchange Commission, said he hopes the agency acts in the first quarter of 2007 to help shareholders win “meaningful” access to annual proxy statements. Corporate interests have fought off past attempts to let shareholders put their own proposals on ballots sent in proxies. Campos spoke at the Reuters Regulation Summit in Washington.
Securities and Exchange Commissioner Paul Atkins says he hopes the agency will make its views known before annual proxy season on the issue of how much power shareholders should have in choosing corporate boards of directors. A federal appeals court last September overturned 16 years of SEC practice that routinely allowed companies to exclude certain shareholder proposals from proxy ballots. Reuters correspondent Kevin Drawbaugh asked Atkins about the proxy issue at the Reuters Regulation Summit in Washington.
The accounting industry watchdog, the U.S. Public Company Accounting Oversight Board, will take disciplinary action against one of the Big Four accounting firms “at some point,” PCAOB member Kayla Gillan says. Since its creation under 2002′s post-Enron Sarbanes-Oxley law, the PCAOB has yet to bring a disciplinary action against industry heavyweights PricewaterhouseCoopers, Deloitte & Touche Ernst & Young, or KPMG. Gillan spoke at the Reuters Regulation Summit in Washington.
An “embarrassed” Public Company Accounting Oversight Board plans to issue its annual audit firm reports for 2006 by the middle of 2007, much faster than its track record in the past couple of years, PCAOB Board Member Kayla Gillan says. The board, which was created by the 2002 Sarbanes-Oxley law to be a watchdog of the accounting industry, has been criticized by investor groups for its slowness in issuing the annual inspections of audit firms. Gillan spoke at the Reuters Regulation Summit in Washington.
U.S. auditors should not be exempt from securities litigation because their best protection against lawsuits is simply “to do the work right,” says PCAOB board member Kayla Gillan. Gillan formerly was chief legal advisor fto the California Public Employees Retirement System before she joined the PCAOB when it was created in 2002 as part of the Sarbanes-Oxley corporate reform law. She spoke at the Reuters Regulation Summit.
The public debate over rising U.S. executive pay should include a closer look at its relationship to blue collar paychecks, says Kayla Gillan, board member of the Public Company Accounting Oversight Board. Gillan, speaking at the Reuters Regulation Summit in Washington, said “there is such a thing as too much. Period.”
Shareholder complaints about exorbitant executive pay grew louder this month when Home Depot gave CEO Robert Nardelli an exit package worth more than $2 million. But Paul Atkins, a Republican commissioner with the U.S. Securities and Exchange Commission, said high pay may be critical for companies hoping to lure top talent.
Christopher Cox, chairman of the Securities and Exchange Commission, says the agency is looking at whether Web sites could be used by companies to disclose required information. Cox spoke at the Reuters Regulation Summit in Washington.
U.S. Securities and Exchange Commission Chairman Christopher Cox told the Reuters Regulation Summit he expects more charges to be filed stemming from the agency’s probe into the backdating of stock options. In this audio clip, Cox rejects criticism that the options issue has been overblown by media outlets and investor advocates.
Executives will be exposing more than ever before under a new pay disclosure regulation that takes effect in 2007, SEC Chairman Christopher Cox says. He spoke at the Reuters Regulation Summit in response to a question about whether the SEC is under pressure to more closely monitor executive pay. The new regulation requires companies to include in their annual proxies a single number for each top executive that combines salary, bonus, perks and other compensation.