January 20, 2004
Reminder about Tomorrow’s “50 Nuggets”
Don’t forget tomorrow’s webcast – “50 Nuggets in 50 Minutes II” – for members of TheCorporateCounsel.net. Broc and Alan Dye will be covering a host of proxy season & governance matters, among other timely items.
An audio archive and transcript will be posted following the live webcast. The non-member fee for this special webcast is $295. If you’re not a member and you wish to access this important program and hear from Broc and Alan, you may simply take advantage of a no-risk trial to TheCorporateCounsel.net.
If you have not renewed your TheCorporateCounsel.net membership for 2004, you will not be able to access the webcast. You can renew online – or by fax by using this order form for TheCorporateCounsel.net. If you have renewal questions, send an email to info@thecorporatecounsel.net or call our HQ at 925.685.5111.
Corporate Executives are Apparently Not Eager to Repay Their Loans
A study put out last Friday by the Corporate Library reports that executives continue to owe their companies millions of dollars from loans that predated Sarbanes-Oxley’s prohibition of the practice. (SOX put a stop to almost all corporate loans to insiders but did not require that pre-existing loans be repaid.) Interestingly, the Corporate Library found that of 23 companies in its study that were operating split-value life insurance programs, only 10 have suspended that benefit.
The study also evaluates the types of loans outstanding and circumstances under which companies have forgiven loans to insiders. Although outright loans are pretty easy to identify as now forbidden by SOX, there are a number of more difficult questions that have been left in the statute’s wake. Broc will be hosting another webcast in three weeks that will explore cashless exercise and other murky areas arising out of SOX Section 402.
Posted by Kimberley Drexler