The Practical Corporate & Securities Law Blog

By Broc Romanek

Go to TheCorporateCounsel.net

 
The NASPP just started conducting an online survey regarding cashless exercises after Section 402 of Sarbanes-Oxley. The early results are interesting...for example:

- Our company currently allows same-day-sale exercises by insiders.(Total responses: n=311)
n=183 (58.84%) Yes
n=121 (38.91%) No

- Does your company allow insiders to use the broker(s) designated by the company?(Total responses: n=238)
n=143 (60.08%) Yes
n=22 (9.24%) No
n=73 (30.67%) We don’t have a designated broker

- Did you discontinue cashless exercises after the adoption of Section 402 of Sarbanes-Oxley?(Total responses: n=189)
n=121 (64.02%) Yes
n=69 (36.51%) No

This survey runs until mid-March - please participate (it is not limited to NASPP members) by going to http://www.naspp.com/survey/2/doSurvey.asp?SurveyNo=4.
posted by broc at 8:41 AM

 
The SEC is open...and Chairman Donaldson is on the job. Yesterday, the SEC posted its final rules on definition of "dealer" whereby it excluded banks for certain de minimus transactions - see http://www.sec.gov/rules/final/34-47364.htm.

For TheCorporateCounsel.net subscribers, we have conducted informal surveys of recent disclosures regarding disclosure controls and procedures - and posting reports on corporate websites - and analyzed the results. These results are in the "Disclosure" section of our "Practice Areas" at http://www.thecorporatecounsel.net/member/CriticalAccounting/.



posted by broc at 7:14 AM

 
Adding pressure on companies to voluntarily expense options, late last week, Ernst & Young became the first major accounting firm to reverse its position on expensing options.

In a letter to the Financial Accounting Standards Board, Ernst & Young stated that it strongly supported efforts by both the FASB and the International Accounting Standards Board to develop a method to ensure that "stock-based compensation is reflected in the financial statements of issuing enterprises." For more information about E&Y's position, see the NY Times article – “Ernst & Young Changes Mind on Options” from February 14th.

The SEC remains closed today due to bad weather...

On TheCorporateCounsel.net, we have posted an interview with David Lynn of Wilmer Cutler on CEO/CFO certifications - see http://www.thecorporatecounsel.net/member/InsideTrack/02_14_03_Lynn.htm.

Later today, TheCorporateCounsel.net is hosting a webcast program on "Understanding the New 'Audit Committee Financial Expert'" - see http://www.greatgovernance.com/Programs.html.

posted by broc at 8:44 AM