CFO Executive Board Releases Research Results; SOX 404 Legislation Triggering Delayed 10-K Filings and CFO Turnover

The Washington, D.C. based CFO Executive Board, a division of the Corporate Executive Board (NASDAQ: EXBD), a leading provider of best-practice research and quantitative analysis, today announced their research reveals that Sarbanes Oxley Section 404 legislation is causing many more companies to miss deadlines for filing their financial reports; with nearly 300 companies indicating that they cannot file their 10-Ks with the SEC on time (versus only 70 last year). Additionally, the finding of a material weakness in a company's control structure is having a significant impact on CFO turnover, not on company share price.

Delayed 10-K Filings. CFO Executive Board preliminary analysis of 10-K filings with the Securities and Exchange Commission indicates that the number of companies failing to meet their March 16th filing deadline has dramatically increased, with nearly 300 companies indicating that they cannot file their 10-Ks on time (versus only 70 last year). Many companies have formally reported that they have been unable to complete their 10-K filings because of material weaknesses in their internal controls with many also informally sharing that they have missed the deadline because their external auditors failed to complete their Section 404 reviews.

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