Tag Archives: tone at the top

SEC Chief Accountant addresses audit committee effectiveness

by Cydney Posner

In a recent speech at the University of Tennessee, “Advancing the Role and Effectiveness of Audit Committees,” SEC Chief Accountant Wes Bricker discusses his recommendations for — wait for it — improving the effectiveness of audit committees.  The speech addresses issues such as diversity, work overload, tone at the top, staying current, implementing new GAAP standards, internal control over financial reporting, non-GAAP measures, external auditor oversight and enhanced audit committee reporting. Continue reading

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Filed under Accounting and Auditing, Corporate Governance

CEOs behaving badly? What do companies do?

by Cydney Posner

CEOs ain’t misbehavin’? A new study from the Stanford Graduate School of Business, “Scoundrels in the C-Suite,” discusses the fallout from and responses to “bad behavior” by CEOs.  While “bad behavior” clearly includes illegal conduct, it may also include other types of questionable but not illegal behavior.  Both of those types of misconduct can make the news.  How have corporations handled these allegations of misconduct?  The study reviewed the news media between 2000 and 2015, identifying “38 incidents where a CEO’s ‘bad behavior’ garnered a meaningful level of media coverage (defined as more than 10 unique news references).” The study then examined the publicly available corporate responses and other consequences of those incidents. Continue reading

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Filed under Corporate Governance