executives

D&O insurance costs rising

Jim Kim — Wed, 20 Aug 2008 17:55:31 -0400

We've noted that boards of top financial firms haven't really been held accountable for the turbulence over the past year. But the subprime crisis is hitting home in another way: rising D&O insurance costs. Financial Week notes that so far, only banks and financial services firms have been hit with rising costs--for good reason. But the number of subprime suits has exploded, and soon other industries may feel the inflationary ripples. In the wake of the Enron scandal in the early 2000s, the cost of D&O insurance rose 260 percent over two years, driven mainly by lawsuits and the fear of lawsuits. This at a time when most directors feel the need for more Side A coverage, which reimburses directors and executive officers when lawsuits are not covered by other insurance policies.

For more:
- here's the Financial Week article

Templates for internal controls

Tue, 01 Apr 2008 07:59:58 -0400

Chances are your don't have a controller at your firm. Some of you don't have a CFO or dedicated compliance exec. But you do have some internal control issues. So how do you get started? In such situations, templates are not a bad idea. Bizmanualz, of St. Louis, has just released a product aimed at getting companies up to speed quickly when it comes to compliance. It offers a range of templates, editable processes that cover everything from risk management to audits to liquidity, and more. Something to think about. Release

ALSO NOTED: Foreign Corrupt Practices Act on radar these days; PCAOB looks for partners overseas;

Tue, 04 Dec 2007 06:59:58 -0500

> Foreign Corrupt Practices Act on radar these days. Article
> Case study: "Paper"-based evidence for compliance purposes. Article
> PCAOB looks for partners overseas. Article
> More on London vs. U.S. IPO race. Article
> Standard marketing: New CRG survey. Article
> HR exec faces jail time in backdating case. Article

And finally... Buffett goes bond shopping. Article

Get your export compliance policy up to speed

Mon, 02 Apr 2007 20:01:39 -0400

Exports represent some thorny challenges for compliance pros. For 2005, the Bureau of Industry and Security recorded 31 criminal convictions and 69 administrative or civil penalties. You want to avoid these obviously. But the compliance challenges are mounting. One view is that BIS is taking a broader enforcement view that just might ensnare all players in the supply chain, including re-exporters, who store goods and firms that facilitate the physical shipment, such as freight forwarders. If you export, it would be a good move to get a grip on your liability flashpoint. If you are found to be involved with a prohibited country or end use, officials will ask if you "have a file describing the due diligence you performed before the export or re-export?" If you answer no, you will face some serious civil and possibly criminal sanctions. You need a compliance program. One that monitors all off-limits destinations and ensures that your list of partners doesn't include anyone on the government's black list. The more info you collect the better.

For more:
- here are some practical tips from SDC Exec

ALSO NOTED: SEC and PCAOB are considering forming a new accounting panel; Pink sheets may get a boost;

Mon, 29 Jan 2007 19:01:38 -0500

> Here's a column from a former analyst who blames Sarbox for making his job tougher. But I think he's really talking about Reg FD. Article

> John Thain takes aim at low standards on AIM. Article

> Will the congressional plan on exec pay backfire? Article

> Basel Committee launches two new initiatives. Article

> The PCAOB has a new general counsel: J. Gordon Seymour. He starts next month. Article

> As more companies go private, the pink sheets may get a boost. Here's an example.

> The SEC and PCAOB are considering forming a panel that would tackle the issue of accounting complexity and how to mitigate it. Article

> Devesys announces upgrade to compliance case tracking software. Article

> New software for governance section of websites. Article

> The biotechnology industry has been among the most active in calling for Sarbox reform. Column

And finally... How should you motivate your employees? Article

ALSO NOTED: More "fair funds" coming?; Resolutions for directors;

Mon, 08 Jan 2007 19:01:38 -0500

> Will we see more fair funds? Inevitably, thriving financial markets brings about more scams. So we may be in for more "fair funds" being set up in accord with section 308. Example

> PCAOB ad for accounting professionals draws ridicule. Brief

> Directors and finance professionals may want to tune into user feedback on their reporting efforts. The FASB has created a new committee to do just this. Article

> Here are some proposed new year resolutions for corporate directors. I am not sure if this was meant to be funny.

> More on the SEC's Holiday gift, that is, more favorable exec pay reporting. Article

> More on Apple stock options conundrum. Article

And Finally... Employees are losing faith in their managers. Article