GSA Corporate Governance Survey Results

Private Company Survey Results

Sarbanes-Oxley is an attempt at improving corporate governance and reducing financial fraud. However, Section 404 is having a dramatic impact, particularly on small- and medium-sized companies. Implementation costs are reported to be disproportionately expensive to smaller companies. Section 404 is believed to be demonstrating little return in terms of fraud detection, and is negatively impacting the ability of high-tech companies to compete.

To gain first-hand knowledge on its effects on the industry, FSA surveyed CFOs and other financial executives at private fabless companies and IDMs on Sarbanes-Oxley’s 404 compliance issues and costs.

The private company survey results include 26 respondents unless otherwise noted.

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1. Has Sarbanes Oxley impacted your plans for a liquidity event?

2a. Is Sarbanes Oxley having a material impact on timing of a liquidity event?

2b. If Yes, how long has it delayed your plans for a liquidity event?

3. How far in advance of a liquidity event do you plan on working on Sarbanes Oxley compliance?

4. Are you initiating work on 404 compliance?

5. For comparison purposes, what are your company’s annual sales?