Small companies are losing revenue because Sarbanes-Oxley compliance costs too much. Wall Street is losing listings to foreign exchanges because Sarbanes-Oxley's requirements are too burdensome. Honest companies that could go public are choosing not to to avoid the hassle of compliance. Hmm... We think we see a pattern here.
The latest is a Liberum Research study released last month revealing that the number of CEOs and VPs that changed jobs in the first six months of the year is more than double the number that moved around in the same period last year. Why? A consultant quoted in this Bloomberg piece we saw this morning blames the increasing burden of compliance with regulations like Sarbanes-Oxley.
We know Sarbox has its problems, but it also seems to be the scapegoat for a whole lot in business today. It's such a hot-button issue that the ensuing "discussion" once it's brought up just might distract decision makers from the real issues.
Could be that some processes aren't what they should be, or someone in management is making poor decisions.
And even if Sarbox compliance is part of the problem, the requirements aren't going anywhere for the time being, so they will have to be addressed.