Sarbanes-Oxley Is Expensive -- So What?

Lora Bentley

Who cares if Sarbox is expensive when it works? That's the perspective of Carlsbad, Calif.-based biotech company Invitrogen. Sure, the company may have spent $2.5 million and 10,000 man hours on compliance, but the embattled corporate reform law's requirements have made it a "better-run business." quotes CEO Greg Lucier as follows:

Sarbanes-Oxley brought a lot more focus to the efforts we were already taking, Invitrogen investors are better protected because Sarbanes-Oxley regulations have been put in place.

For example, company directors meet more often, and independently of management. Employee complaints are taken by several people rather than just one or even a handful. Ethics training is systematic and meticulous. And Lucier makes his managers answer for their department's financial results -- in much the same way that he must take responsibility for the entire company's results.


Considering that biotech companies have been committed advocates for a Sarbanes-Oxley exemption, it's refreshing to see one of their number making the law work to its advantage.

Add Comment      Leave a comment on this blog post
Aug 16, 2007 6:21 AM Jeff Ryall Jeff Ryall  says:
Built-in, not bolted-on. That's what makes the difference.Each time there is a new requirement that demands a baseline due diligence (think quality in the 1990s, OHS for example), the luddite rump seem to complain that it can't be done, will ruin business competitiveness etc. etc.Good business practice involves attaining meaningful improvement, then squeezing cost out.Those who embrace change, compared to those who resist, are really the effective, high calibre management. Reply
Aug 17, 2007 3:48 AM Kannan.M.S. Kannan.M.S.  says:
Ebrace Change not to get Embarassed.High Calibre Management is all about bringing in the change that sets the new way of conducting the business with a Quantum leap in standards,quality,delivery,cost & not the least the Securityaspects.The Five BIG "S"Selectivity,Sensitivity,Surity,Safety,Standards those drive the confidence to all customers the way one conducts business & to associate with. Reply

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