Is Sarbanes Oxley Act worth the dough?

Question

I am wondering what will become of this legislation... It seems that many companies are petitioning the government to do away with the requirements for mid-tier businesses (i.e. those SEC, non-accelerated filers) for which the requirements are not yet in effect. Is it me or are people forgetting what just happened to the public in 2000? Management says no to SOx. Isn't management inherently biased?
It appears to me that with Mr. Bush signing the "Pension Protection Act of 2006" that the requirement of internal controls over financial reporting for public companies would be more important for all US workers who are having their cash put into 401(k) plans without their explicit consent. Ofcourse, those that didn't actively choose their retirement options probably don't vote that much and don't realize what is happening to that $ they don't see in their paychecks. I see a big set up for people to lose their futures if the Gov't repeals this law. Am I wrong?

Well Rob D., I couldn't disagree more. Seems like taking choice out of the equation isn't right, and accountability takes a back seat to the love of money for a bunch of fund managers.

Answer 1

The act is ineffective, too costly for companies to comply (prohibitive for many), and is inconsistent in its enforcement. The Pension Protection Act is a tremendous piece of legislation, encouraging personal accountability and putting the responsibility for retirement advice where it belongs--with the financial industry.