Financial Executives Revise Ethics, Support CARTA
Mr. Livingston also suggested the proposed legislation be amended to:
- Require that all senior financial officers of public companies adhere to a code of ethics similar to FEI's newly revised code.
- Require that the proposed public accountability board include representatives of professional organizations, such as FEI.
- Require that stock exchanges insist that members of audit committees have an understanding of generally accepted accounting principles and other matters that can only have been gained through experience as a financial executive or auditor.
- Restrict companies' ability to hire senior personnel from their external auditors.
- Establish a committee to study the Financial Accounting Standards Board and issue recommendations for reform in three months.
- Require that audit committees disclose the nature and extent of their continuing professional education and require that public companies provide a report of their key corporate governance policies.
- Require that shareholders approve all stock option plans.