22 October 2004

SOX a Ticking Time Bomb?

In the latest issue of Corporate Board Member you will find some very interesting statistics and comments. This one got our attention:

Is That A Ticking Clock Or A Time Bomb?

Has meeting Sarbanes-Oxley's requirements left directors enough time to think about other issues?

The answer is yes, but only because you're spending more time on the job than ever before.

The SOX Factor
Do directors think Sarbanes-Oxley has created an environment where management is so distracted that company performance will be affected?

No: 44%
Not Sure: 36%
Yes: 20%

I would say that over one third don't know, don't care or are too scared to really find out. One fifth think that performance will be impacted. That leaves the remaining 40+ % feeling confident that SOX will not affect corporate performance. Let's just hope that the "NO" voters do really know that this is the case.

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