Dear Reader: SEC Offers Too Little, Too Late

It is refreshing to hear that William Donaldson, the chairman of the Securities and Exchange Commission, wants to reduce the cost burden that Sarbanes-Oxley imposes on businesses (see Newsmakers, page 3). Unfortunately, as is so often the case when the head of the SEC wades into the fray, Donaldson’s effort will almost certainly prove to be way too little, and way too late. While companies have already spent many millions of dollars tightening up their internal controls and improving transparency in order to conform to Sarbanes-Oxley’s requirements, it appears that Donaldson is planning to wait until next month before he even begins formal consultations on reining in the costs of compliance.

See full Editor's Letter.