Compliance Stuff

As previewed in our previous blog post , the Securities and Exchange Commission (SEC) hosted a roundtable on executive compensation disclosure on June 26, with panelists considering whether and to what extent the current executive compensation disclosure requirements for public companies should be reformed. SEC Chairman Paul S. Atkins opened the roundtable by describing the current disclosure regime as a “Frankenstein patchwork of rules.” He set the stage for the roundtable as a first step in assessing whether the current rules achieve the SEC’s three-part mission of: (1) investor protection, (2) fair, orderly, and efficient markets, and (3) capital formation. Next, Commissioner Hester M. Peirce observed that the current rules have created a disclosure regime focused on complex details (the trees), detracting from the broader picture (the forest); Commissioner Mark T. Uyeda questioned whether certain SEC disclosure rules were implemented to “name and shame” executives in order to curb...

  In corporate compliance, some very basic compliance lessons are destined to be repeated. This was clear from the recently announced   Securities and Exchange Commission   (SEC) Foreign Corruption Practices Act enforcement action involving Deere (John Deere herein). The $9.9 million settlement between John Deere and the SEC involved FCPA violations at its Wirtgen Group subsidiary. It offers a stark reminder that even the most established companies can stumble over basic compliance principles . For those in the compliance community, this case highlights the importance of robust integration post-acquisition and serves as a throwback to classic FCPA pitfalls that should have been avoided. The John Deere Case: A Synopsis According to the  SEC Press Release  announcing the resolution, “From at least late 2017 through 2020, Wirtgen Thailand employees bribed Thai government officials with the Royal Thai Air Force, the Department of Highways, and the Department of Rura...