Governance Snippet
Regulation is often bemoaned in governance circles. Cost, complexity and risk see companies delisting from public exchanges or relocating to less stringently governed locations. Sarbanes-Oxley is a common culprit. Nice then to see some evidence which pricks this orthodox thinking!
According to Advisen Ltd an insurance analytics enterprise directors and officers insurance premia have fallen 30% since 2003. "Since the corprate governance debacles of the early 2000s, shareholder activism and government oversight have created much greater transparency into corporate management.." The US Sarbanes-Oxley Act 2002 has helped reduce the number of class action suits and D&O insureres are increasingly using governance advisory services to gauge the risk that a board will trigger failure, scandals or suits. Chalk one up for regulation. GPW February 2 2007