Top executives at many small publicly held companies don't like the Sarbanes-Oxley Act. They complain that it costs too much to comply with the new law.
But plenty of investors have a far different take. They say it makes the kinds of corporate scandals that led to the act less likely.
One of their champions is Kurt Schacht, who is managing director of the CFA Centre for Financial Market Integrity, a think tank that promulgates ethical standards in the investment community.
As the chief legal officer at the State of Wisconsin Investment Board in the 1990s, Schacht monitored the governance of corporations whose stocks were held by Wisconsin's public pension funds.
This spring, the chasm that so often separates corporations and their investors could grow a little wider. Part of the debate is about risk: Have companies gotten too risk-averse after millions of investors got burned in the bull markets of the past decade? Or do we need more controls to avoid future scandals?
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