Foley unveils fourth annual study: The Cost of Being Public in the Era of Sarbanes-Oxley

Results Contrast With Claims That Costs Have Come Down Dramatically; Audit Fees Continue to Increase as Small Companies are Disproportionately Impacted

Foley's fourth annual study, The Cost of Being Public in the Era of Sarbanes-Oxley, reveals the overall cost of being public in 2005 dropped slightly from the historic levels seen in 2004. The costs associated with corporate governance reform dropped 16 percent for companies with under $1 billion in annual revenue and six percent for companies with over $1 billion in annual revenue.

The reductions between 2004 and 2005 were driven by large decreases in costs associated with lost productivity, legal fees and corporate governance set-up costs. However, these decreases were largely offset by year-over-year increases in audit fees, D&O insurance and board compensation for companies of all sizes.

See full Press Release.