Financial
Executive
December 2002
p. 16-18
"Audit Committees Bracing for Shakeup"
by Paul Sweeney
The author
examines the impact of Sarbanes-Oxley legislation, the need for financial
expertise in audit committees, and for independence.
One interviewee cited an estimate that “as many as 35% of the
country’s board seats could be vacated” due to restricting the number
of boards on which they serve, and due to elevated standards.
Among those
interviewed for the article is Diane C. Harris, president of Hypotenuse
Enterprises, Inc., and an audit committee chair agrees that companies are
very actively recruiting prospective members with financial experience.
She says
“I’ve had a lot of calls from executive search firms lately,” and at
least three have indicated interest in actively considering her candidacy.
“All of them specifically target the board of directors’ audit
committee. From the phone
calls I’m getting, I can tell that these companies are all making major
changes.”
