A new study calculates that compliance and governance costs eased this year for companies of all sizes, though they remain much higher than they were before Sarbanes-Oxley.
What does it cost a company to be public? A new study estimates that companies with less than $1 billion in revenues spent $2.9 million in 2005 for the privilege of a listing, down 16 percent from the previous year, when the total added up to $3.4 million. Companies with more than $1 billion in revenues paid on average $11.5 million in 2005 to be public, a drop of 6 percent from the prior year, when being public cost $12.3 million.
The report was released Thursday morning by the law firm Foley and Lardner, which has conducted the study annually since 2002. The firm's cost-of-being-public calculation includes the cost of directors and officers insurance, audit and legal fees, board compensation, lost productivity, corporate governance setup costs, and "other" Sarbanes-Oxley-related costs.
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