Executive Deferred Compensation: The Game Has Changed
Recent corporate scandals have cast a harsh light on executive compensation practices ' including deferred compensation plans benefiting officers, directors and high-level executives. As part of the American Jobs Creation Act signed by President Bush on Oct. 22, 2004, Congress added Section 409A to the Internal Revenue Code. Section 409A imposes numerous restrictions on non-qualified deferred compensation plans (NQDCs) and will introduce a new compliance regime in the executive compensation arena.
Intellectual Property Audits: An Eye-P Opening Experience
In the business world, risks are commonplace and an inherent part of doing business. The goal of any business, however, is to minimize the risks that it faces ' in the most efficient manner, using the minimum amount of resources. One of the keys to running an efficient and effective business is knowing how to manage risks in the context of the overall business strategy. In the IP arena, risks management is also possible, and it begins with the IP Audit.
Supreme Court's Sentencing Guidelines Decision
On January 12, the Supreme Court, in <i>United States v. Booker</i>, found portions of the Federal Sentencing Guidelines unconstitutional. For the last few years, corporate officers and directors have been forced to take a personal interest in criminal justice and in the Sentencing Guidelines. This has been especially true after the United States Sentencing Commission raised the guideline's penalties for white-collar crime in response to the Sarbanes Oxley Act of 2002 (SOX). To understand the importance of the Booker case, it is necessary to know how sentencing worked before and under the guidelines.
Dealing with the SEC's 'Up-the-Ladder' Reporting Requirements
The provision of Sarbanes-Oxley (SOX) that sets out the gatekeeper role for lawyers, Section 307, requires that lawyers report "up the ladder" (that is, to senior management and, ultimately, to the audit committee or the full board of directors) evidence of certain violations of the securities laws and breaches of fiduciary duties. While the SEC's rules implementing Section 307 became effective in August 2003, there remains much ambiguity in how the SEC plans to enforce them.
SOX: Measuring the Costs and Searching for Tangible Benefits
After spending millions in 2004 to comply with the first phase of Sarbanes-Oxley (SOX), compliance officers and financial executives should evaluate their return on compliance. While the tangible benefits may be difficult to value today, most financial executives (57%) describe their company's SOX compliance as a good investment for stockholders, and 70% say they have stronger internal controls after complying with the law, according to the 2004 Oversight Systems Financial Executive Report On Sarbanes-Oxley Compliance.
New Steps for an Effective Company Compliance Program
U.S. Sentencing Commission statistics indicate that companies charged with federal crimes have been doing an awful job of creating effective programs to detect and deter employees' criminal acts. According to the Commission, of the more than 850 companies convicted of crimes from 1995 through 2002, only two had a compliance program that a federal judge recognized as effective. In one respect, this is not surprising, as federal prosecutors routinely argue that if a company had an effective compliance program, the company wouldn't have committed the crime in the first place, and the court wouldn't be spending its time in a sentencing hearing.
In The Courts
Recent rulings of importance to you and your practice.
Supreme Court's Sentencing Guidelines Decision
On Jan. 12, the Supreme Court, in <i>United States v. Booker</i>, found portions of the Federal Sentencing Guidelines unconstitutional. For the last few years, corporate officers and directors have been forced to take a personal interest in criminal justice and in the Sentencing Guidelines. This has been especially true after the United States Sentencing Commission raised the guideline's penalties for white-collar crime in response to the Sarbanes Oxley Act of 2002.
