X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

With the conviction and incarceration of America’s most prominent CEO, Martha Stewart, it becomes incumbent on corporations of any size to make new governance arrangements. If you manage other people’s money, beware! At issue are the corporate governance rules created by the Sarbanes-Oxley law (hereafter, Sarbox) and new applications by a fresh crop of U.S. attorneys. Both criminal and civil penalties await that will make the RICO abuses of the last 30 years seem like a waltz to corporate officers and directors.

In my opinion, formed after 30 years of practicing corporate and alternate dispute resolution law in Texas (home of Enron, Haliburton, et. al.), the only practical and economical solution is for corporations to create ombudsman positions. These officers could help inform managers and executives of possible abuses down the ranks, while there is still time to correct them internally. The concept, which originated in Sweden, has found growing acceptance in the United States in recent years. At least 200 major corporations have such positions, with 50 added in the two years since Sarbox passed.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.