Feeling under the gun? That's understandable. After all, the onus is on you to restore investor confidence.
Some companies are considering doing more than just meet insider trading requirements to overcome investor distrust. While the SEC now demands companies inform investors of insider sales of company stock within two days after a sale, Charles Schwab Corp. may require senior executives to announce intentions prior to the sale--a move investors would appreciate, says Peter Knutson, associate professor emeritus of accounting at the University of Pennsylvania's Wharton School in Philadelphia. "When people on the inside are buying and selling, it's a strong signal of how they're valuing shares."
Other firms are seeking ways to spread the responsibility of meeting the requirements. Some have addressed the new rule that CEOs must certify financial reports by asking senior executives to sign off on numbers first. Knutson notes the action reflects CEOs' awareness that the rule is unreasonable.
"There's no way CEOs can know the [reports] are faultless, They're being asked to certify beyond what auditors certify, and auditors send in trained people to do that."
JENNIFER PELLET (firstname.lastname@example.org) is a New York City-based freelance writer specializing in business and finance.
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