boils

How to control for options dating miscues

Mon, 26 Feb 2007 19:01:39 -0500

It is often said that Sarbanes-Oxley has solved the options mis-dating scandals, given that the new rules basically ban improper backdating. But that would be a bit naive. The bottom line is that options controls are now something that the board must evaluate and perhaps even attest to. It would be hard not to call it a 404 issue, especially in the current climate. Of course, one could do this all manually. But many big companies will likely want to consider one of the emerging automated solutions. It boils down to a time-stamp issue in many cases, which may require a common and inexpensive time server. The thought is that a system will be able to note exactly when options were awarded and cross check that with the options' stated grant dates--all in a way that is audit-able. It may be worth looking into.

For more:
- here's an article from Wall Street Technology

Related Articles:
Options scandal: Where were the auditors? Report
Meet the man who uncovered the options scandal. Report
How much will the options scandal cost shareholders? Report

Time for multifactor authentication?

Mon, 26 Feb 2007 19:01:38 -0500

Sarbanes-Oxley has focused attention on online security, especially for banks and brokerages. One solution that has gained more attention is multifactor authentication, which boils down to an approach requiring more than a user name and password to access a network. Now, many banks and other online service providers have moved to a multifactor approach. You would have to think that a similar approach might be worth pondering when it comes to the internal intranet, especially areas that contain proprietary information. There are some downsides to be sure. One is the cost. The other is sheer pain-in-the-neck factor that comes with a multi-layered approach. Employees will grumble. But it might be worth a shot. Article

Update: The twilight of NYC?

Mon, 06 Nov 2006 19:01:39 -0500

You night have been tempted to think the "twilight of New York as a financial center" story was a fleeting one. But the city has done a good job keeping it in the news. The latest: Senator Charles Schumer has weighed in on the side of Mayor Bloomberg and others in arguing that Sarbox threatens the city's status. Recall that the city has hired McKinsey to help it sort through the issues. While there are sound reasons that Sarbox should be modified, the issue really boils down to Wall Street. IPOs have globalized a bit, and that has some people nervous. This is overblown for a few reasons: Top investment banks, all based in New York, have been cashing in despite the trend away from the city. They can underwrite around the world. Also, if things really get tight, top banks could always reduce fees to drum up business. And finally, longterm would-be issuers may realize they get much better after-market support in the U.S.

For more on Schumer and NYC:
- read this article from CNNmoney.com

ALSO: There still a healthy number of foreign companies interested in U.S. exchanges. Article

Related Article:
NYC officials hire McKinsey to explore exchange woes. Report

Trend: More companies adding CROs

Mon, 14 Aug 2006 20:01:39 -0400

Is a new acronym the answer to your compliance woes? Hardly, but a CRO, which stands for Corporate Responsibility Officer, is gaining ground at more big companies. The likes of Wal-Mart, IBM, Charles Schwab and others have already embraced the concept. Others will likely follow. It basically boils down to a single person responsible for all compliance efforts, a person who ideally is empowered to do all necessary to keep the company on the straight and narrow. Some companies, however, have basically given the title to an existing executive, which may or may not work.

> Here's an article.
> Here's some commentary from HRO Today.