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SEC Financial Expert and Associated Banc-Corp, AIG Funds, Legg Mason Closed End Funds, and Hochschild Mining plc Board Director Eileen Kamerick, Deloitte Vice Chairman and National Managing Partner, Center for Board Effectiveness Deb DeHaas, and Legal Corporate Governance Expert and The University of Chicago’s Michael J. Marks Professor of Law Todd Henderson offer their most important recommendations to boards for this year’s earnings seasons.
1. Kamerick regarding FINANCIAL REPORTING:
“This year is anything but a routine time in terms of financial reporting. Management teams and audit committees are in the uncomfortable position of being exhorted by the SEC to provide as much detail as possible regarding future operating conditions and resource requirements, yet it’s at a time when there are almost infinite numbers of variables and virtually nothing is certain.....
2. Henderson regarding LEGAL:
“Remember that the intent of securities laws is to have large public companies release the information that they would naturally disclose if they were a small private company.
Consider if there were only 10 owners in your company and a catastrophe strikes. You would tell them.....
3. DeHass regarding ACCOUNTING/GOVERNANCE:
“Agility & Flexibility: Board and management are engaging more to meet fast-paced changing issues. Being thoughtful about processes and how best to work together can result in: 1) more informal interactions; 2) a review of what information is most important and when appropriate; and 3) a fuller utilization of Board/committee members’ unique skills/experiences, including their capabilities to be sounding boards for key management.....
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