Sarbanes-Oxley Requirements Up CEO Pay, Study Says
Friday, December 7th, 2007|
We know Sarbanes-Oxley compliance costs a lot. Just ask any public company that is subject to the strict corporate reporting law. But does Sarbox affect CEO pay? New research from the University of Colorado at Boulder Leeds School of Business says it does. According to the study, if a CEO is featured in a major business magazine and his or her board is made up of a majority of outside directors, the CEO’s stock options and bonus jump an average of $600,000. On the other hand, if the board is comprised of mostly insiders and the CEO is featured in a business publication, his or her compensation only increases by about $270,000. The study spanned eight years and evaluated 3,500 large companies. |
Prep Work: Managed IT Services and Regulatory Compliance
Crime does pay, at least for managed service providers. Perhaps we should explain: The wave of corporate scandals such as those that engulfed Enron and Adelphia led to a more stringent regulatory structure. This makes it more likely that a company — unsure of precisely how to approach compliance — will call on an outside firm for help, says Kunjal Trivedi, the product manager for managed security services for Cisco. Indeed, the relationship can be perfect: The compliance-oriented managed IT service provider gets a client and the client stays out of trouble. 
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