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PW’s CEO to Serve as Panelist at Forum for Corporate Directors on February 23

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A focus on board involvement with investors. Roger Pondel of PondelWilkinson will be participating on a panel discussion at the Forum for Corporate Directors exploring the dynamic between board members and investors.

In today’s volatile stock market and increasingly activist investor environment, it is vital that board members fully understand the unfiltered views of investors as they govern theirrespective companies. James Moloney, partner with Gibson, Dunn & Crutcher, will moderate a panel on this critical topic February 23, at the 7 a.m. breakfast meeting of the Forum for Corporate Directors, at the Pacific Club, 4110 MacArthur Blvd, Newport Beach.

Directors who are aware of their investors’ perceptions and expectations are far better equipped to clarify, remedy and reinforce their companies’ messages. The panel will feature Glenn Welling, Founder and CIO of Engaged Capital; Glenn Schafer, Chairman of the Board of Janus Capital Group and Lead Director of Genesis HealthCare; and Roger Pondel, CEO of investor relations consultancy PondelWilkinson.

For more information and reservations, email michelle@fcdoc.org or visit http://fcdoc.org.

 

 

 

 

 

 

Here’s Lookin’ Atchya

“Yorp photou don’t want to hear from us, since nothing good is going to come out of it.”

If those sound like fightin’ words, they are. They were spoken by Jay D. Hanson, one of five members leading the Public Company Accounting Oversight Board (PCAOB), www.pcaobus.org, affectionately referred to in corporate circles as “Peek-a-Boo.”   Like in “Peek-a-boo, I see you.”

Hanson spoke recently to an almost standing-room-only crowd at a half-day conference for audit committee members and CFOs of publicly traded companies, sponsored by PondelWilkinson in conjunction with the University of California, Irvine.

The PCAOB was established by Congress in 2002, following passage of the Sarbanes-Oxley Act (SOX), to oversee audits of public companies. SOX required that auditors of U.S. public companies be subject to external and independent oversight for the first time in history. Previously, the profession was self-regulated. The Board was created in response to the increasing number of accounting “restatements” (corrections of past financial statements) by public companies during the 1990s, plus the high profile accounting scandals and record-setting bankruptcies by large public companies, notably those in 2002 involving WorldCom and Enron.

“We cannot put people in jail, but we can end careers. We often ask candid questions that make executives squirm.” Hanson said. “Our focus is on internal controls. The most prevalent problems involve guidance, revenue recognition and fair value issues. It is surprising how many CEOs admit they have taken their eye off the ball when it comes to these matters.

“Particularly for small and medium-size companies, being on an audit committee is the hardest job in the boardroom today. Members increasingly are being targeted for lawsuits. And don’t forget cyber threats, as we all see more regularly on the news, impacting millions of people,” Hanson added, seemingly out of context as a thought he did not want to forget to convey. He duly noted that CFOs and audit committee members can also be seen as responsible for such maladies as well.

The Board’s mission is to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. It also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection. All PCAOB rules and standards must be approved by the U.S. Securities and Exchange Commission, and although the Board has no authority over public companies, PCAOB work has wide implications for public companies and their audit committees.

Hanson’s parting advice: “Go beyond minimal requirements and make good use of these three verbs: explain, clarify and disclose.”

Other sponsors of the conference included independent auditing firm Squar Milner; law firm Paul Hastings; financial printer RR Donnelley; and insurance brokerage AON.

– Roger Pondel, rpondel@pondel.com

Roger Pondel Talks IFRS

Recently, the National Investor Relations Institute’s Los Angeles chapter interviewed Roger Pondel regarding International Financial Reporting Standards. Clients with global operations are spending more time on this subject than those that solely operate in the U.S. The SEC is expected to make an adoption decision in 2011, and that, of course, will pace the future insofar as clients’ time commitments are concerned. If there is an affirmative action, it will be effective in about four or five years, giving companies plenty of time to plan, educate, train and retool as necessary. Read the rest of the NIRI article here.

 

Roger Pondel, rpondel@pondel.com