TECH TALK
Should shareholders approve executive compensation plans?
According to a recent survey, only 31% of technology CFOs said their company allows shareholders to vote on these plans, yet 61% personally felt shareholders should have a say.
In its 2008 Technology Outlook Survey , BDO Seidman examined the opinions of 100 CFOs at leading U.S. technology companies with annual revenues between $100 million and $15 billion.
Other findings included:
67% said their company’s executive compensation plans were affected by legislative and regulatory changes—such as IRC § 409A and FASB Statement no. 123(R). More than one-quarter (27%) described the impact as high.
49% and 36% identified Sarbanes-Oxley section 404 and FIN 48, respectively, as the financial reporting requirements that posed the greatest compliance challenges. Only 12% cited section 409A.
54% managed SOX section 404 compliance function in-house, while only 11% said they outsource the function to an external provider. More than one-third (35%) said they co-source compliance through a combination of in-house and outsourcing.
Source: BDO Seidman LLP, www.bdo.com .