There are some nervous corporate directors out there these days.
The Sarbanes-Oxley Act has raised the bar for how public companies are run. Recent court decisions have shown that directors of public companies can't simply claim ignorance when problems arise. The former non-employee directors of WorldCom recently reached a $60.8 million civil settlement in a class-action suit stemming from the company's huge fraud. Insurance covers much of the cost, but the directors must pay $24.8 million themselves.
But former Securities and Exchange Commission Chairman Harvey Pitt had some words of encouragement for corporate directors Tuesday morning at the Sarbanes-Oxley Conference and Exposition at the Baltimore Marriott Waterfront.
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