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ISS study finds percentage of racial/ethnic minority directors finally hits 20% mark

A study of companies in the Russell 3000 just released by ISS showed that, for the first time, directors who self-identified as racial and ethnic minorities accounted for 20% of all board directorships. The study found that...more

Audit committee oversight of ESG fraud risk

In this article, accounting firm Deloitte observes that boards and managements often experience “denial” when the topic of fraud risk arises—no one wants to feel that the trust they place in their own employees is actually...more

SEC crams much into packed Fall 2022 agenda

The SEC’s Fall 2022 Reg-Flex Agenda—according to the preamble, compiled as of October 6, 2022, reflecting “only the priorities of the Chair”—has just been posted, and it looks like the SEC will have another frenetic year...more

Will companies need to provide more detailed country-by-country tax disclosure?

The topic of taxes—corporate, presidential and otherwise—seems to be trending these days, with calls for greater transparency coming from investors, analysts and others, including speakers at the SEC’s Investor Advisory...more

Will climate disclosures translate into climate action?

In light of the billions that even the SEC’s economic analysis estimates would be spent complying with its proposed climate disclosure regulations (see this PubCo post, this PubCo post and this PubCo post), will those...more

Is buying a carbon offset like buying a medieval indulgence?

At a recent meeting of the SEC’s Investor Advisory Committee discussing the SEC’s climate disclosure proposal, a speaker in charge of ESG investing at an asset manager raised the possible risk that companies, faced with a...more

After dam collapse, SEC alleges false safety claims in sustainability reports and SEC filings

As described in this press release, the SEC has filed a complaint against Vale S.A., a publicly traded (NYSE) Brazilian mining company and one of the world’s largest iron ore producers, charging that it made “false and...more

Audit Analytics reports on cybersecurity disclosure

These days, with our government warning regularly about the likelihood of breaches in cybersecurity, concerns about cyber threats have only multiplied. Introducing the SEC’s new proposal for cybersecurity disclosure in March...more

SEC votes to propose new rules for cybersecurity disclosure and incident reporting [UPDATED]

[This post revises and updates my earlier post primarily to reflect the contents of the proposing release.] - At an open meeting last week, the SEC voted, three to one, to propose regulations “to enhance and standardize...more

SEC votes to propose new rules for cybersecurity disclosure and incident reporting

In remarks in January before the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, SEC Chair Gary Gensler addressed cybersecurity under the securities laws. (See this PubCo post.) Gensler suggested...more

Gensler discusses cybersecurity under the securities laws

In remarks yesterday before the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, SEC Chair Gary Gensler addressed cybersecurity under the securities laws. Gensler suggests that the economic cost...more

SEC offers another packed agenda for Fall 2021

The SEC’s new Fall reg-flex agenda is posted and, no surprise, it’s packed. Here is the short-term agenda and here is the long-term version. And just as with the spring agenda, Commissioners Hester Peirce and Elad Roisman...more

Commissioner Roisman talks cybersecurity

On Friday, in remarks before the L.A. County Bar Association, SEC Commissioner Elad Roisman addressed some of the challenges associated with cybersecurity and cyber breaches and similar events. In his presentation, Roisman...more

Blog: SEC Chair testifies before House Committee on Financial Services—climate, human capital and cybersecurity disclosure...

On Tuesday, SEC Chair Gary Gensler testified for over four hours (without a break!) before the thousands (it seemed) of members of the House Committee on Financial Services. His formal testimony covered a number of topics on...more

Blog: SEC Chair testifies before Senate Banking Committee—firmly denies paternity of all public companies!

On Tuesday last week, SEC Chair Gary Gensler gave testimony before the Senate Committee on Banking, Housing and Urban Affairs. His formal testimony covered a number of topics on the SEC’s agenda that Gensler (and others)...more

Blog: SEC approves Nasdaq “comply-or-explain” proposal for board diversity

You probably remember that, late last year, Nasdaq filed with the SEC a proposal for new listing rules regarding board diversity and disclosure, accompanied by a proposal to provide free access to a board recruiting service....more

Blog: New challenge to California board diversity laws

There’s a new case challenging both of California’s board diversity laws. The case, which was filed in a California federal district court against the California Secretary of State, Dr. Shirley Weber, seeks declaratory relief...more

Blog: Can hypothetical risk factors be misleading?

In In re Alphabet Securities Litigation, the State of Rhode Island, as lead plaintiff, filed a Rule 10b-5 action against Google LLC, its holding company Alphabet, Inc., and certain executives, alleging that the defendants...more

Blog: SEC charges company with disclosure controls violation as a result of cybersecurity failure

Once again, a “control failure” is a lever used by SEC Enforcement to bring charges against a company, this time for failure to timely disclose a cybersecurity vulnerability. Yesterday, the SEC announced settled charges...more

Blog: What’s happening with the Nasdaq board diversity proposal?

You probably remember that, late last year, Nasdaq filed with the SEC a proposal for new listing rules regarding board diversity and disclosure. The new listing rules would adopt a “comply or explain” mandate for board...more

Blog: BlackRock details its climate expectations

In his 2021 letter to CEOs, BlackRock CEO Laurence Fink asked companies to disclose a “plan for how their business model will be compatible with a net zero economy”—that is, “one that emits no more carbon dioxide than it...more

Blog: Oversight of ESG — ten questions for boards

According to Protiviti, in 2019, 90% of companies in the S&P 500 issued separate sustainability reports—not part of SEC filings—and, as of February 2020, over 1,000 companies with an aggregate market cap of $12 trillion have...more

Blog: Andeavor charged with internal control violations

A couple of weeks ago, the SEC settled charges against Andeavor, an energy company formerly traded on the NYSE and now wholly owned by Marathon Oil, in connection with stock repurchases, authorized by its board in 2015 and...more

Enforcement again targets failure to disclose perks

Failure to disclose perks seems to be a fairly attractive target for SEC Enforcement these days. In another fiscal year-end action, Enforcement has charged Hilton Worldwide Holdings Inc. with failure to disclose in its proxy...more

Blog: SEC charges HP with failure to disclose known trends and uncertainties

Enforcement has certainly been busy at the end of the SEC’s fiscal year, with disclosure violations receiving their fair of attention. In this action against HP Inc., the company was charged with failing to disclose known...more

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