Financial Accounting Blog

Thursday, April 15, 2004 reports that while the increased accounting expenses that have resulted from tighter scrutiny on accounting practices in recent years has not hit the pocketbooks of corporate America's top execs as of yet, changes may be coming soon.
Although the reforms so far have created more work for finance departments, as well as higher accounting expenses, the direct impact on executives and directors hasn't been particularly troublesome. But the reforms now being demanded by investors and activist advisory groups will be much more of a burden. The investors and directors we surveyed want companies to move toward separating the roles of CEO and chairman, to make directors more independent and accountable, and to scale back and restructure executive compensation so that it is aligned more closely with the creation of long-term value.