When Herley Industries Inc. released its proxy report earlier this year, it said that having no "financial experts" on its board's three-person audit committee was in the "best interest" of the company. Try telling that now to the defense contractor's battered shareholders.
In recent months, the Lancaster, Pa.-based company and its former chairman were indicted for fraud, its outside auditors quit and its stock slumped 30 percent.
It sure sounds like those experts could have been a big help _ possibly to avoid this mess in the first place, and certainly to aid the company in cleaning it up.
The irony in all this was pointed out by accounting expert Jack Ciesielski, who noted in a recent blog that "there's a reason why a financial expert belongs on audit committees, and Herley has provided an excellent example."
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