2010: Five Big Bangs in Corporate Governance
Professor Dan Siciliano rates the whistleblower provisions of the Dodd-Frank Act in this Boardmember.com article by Laura J. Finn.
While the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed and took center stage, other corporate governance happenings did occur in 2010, like an increase in FCPA enforcement and board members focusing more on their own performance. In this top-five roundup, Corporate Board Member looks back on a tumultuous year for corporate governance.
1. The Dodd-Frank Act: Payback Time in Washington At the Corporate Board Member Annual Boardroom Summit, former Security and Exchange Commission Chairman Harvey Pitt called the Dodd-Frank Act “a disaster.” With 500 rules in the act, it certainly brings a whole new load of work to company executives and board members, what with requirements already enacted, requirements coming into play in 2011 and beyond, and studies the government is currently doing that companies need to be aware of.
“I rate it an eight in terms of a 1–10 scale of disaster,” says F. Daniel Siciliano, faculty director, Stanford Rock Center for Corporate Governance and associate dean, Stanford Law School. This is an area boards should pay attention to, as more detail on the program is provided by the SEC.