Next month will be the 10th anniversary of the Sarbanes-Oxley Act. Ahead of this governance milestone, there have been numerous allegations of executive misconduct, excessive risk-taking, lax internal controls, unqualified directors and misuse of client money. In each instance, the inference is clear: if the leadership had not missed clear signals, scandals could have been averted. Though such “20/20 hindsight” has never been more prevalent, it is detrimental to ensuring that board members do their jobs.
via Seeing Red Flags Where None Exist – NYTimes.com
