SEC Issues New Proposed Regs on Pay Disclosure Ratio

The Securities and Exchange Commission today voted 3-2 to propose a new rule that would require public companies to disclose the ratio of the compensation of its chief executive officer (CEO) to the median compensation of its employees. 

The new rule, required under the Dodd-Frank Act, would not prescribe a specific methodology for companies to use in calculating a “pay ratio.”  Instead, companies would have the flexibility to determine the median annual total compensation of its employees in a way that best suits its particular circumstances.

The worry, however, is that it may be hard to draw inferences or comparisons across industries or even among competitors. There are also opportunities to distort the numbers by firms hiring more highly paid employees and outsourcing to contractors lower-paid, lower skilled activities. I see lots of work on the horizon for lawyers, regulators, HR/comp consultants and others. 

Ah, the magic of unintended consequences!

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539817895#.Uj-KtM1znbA

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Google Considers Abandoning Cookies

It has been reported (initially in USA Today) that Google is considering abandoning cookies for AD-ID, a system which might be sold as something more appealing to advertisers, market researchers and consumers alike. Already of course,  Microsoft has made "do not track" the default setting for Internet Explorer. Apple Safari already blocks third party cookies as will new versions of Firefox.

Hard to tell if this is a "if you can't beat them, join them" situation or something much deeper/more nuanced. Somehow though, if I were forced to beat, I know where I would put my money.

http://www.businessinsider.com/google-may-ditch-cookies-for-adid-2013-9

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Pew Poll Regarding Online Anonymity: The Findings Stink

A new survey finds that most internet users would like to be anonymous online, but many think it is not possible to be completely anonymous online. See details contained in link below.

http://pewinternet.org/Reports/2013/Anonymity-online.aspx

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Bill, Baby, Bill: Lawyer Bills 29 Hours In a Day

Above the Law reports on a court-appointed attorney who billed 29 hours in a day. Now, like me, I know that most lawyers entered the profession because they are mathematically challenged. That may be the case here. And I think this is where he is probably going with the "sloppy book-keeping" argument, anyway.

Here is another thought: What about travel across time-zones? That is a great way to rack up hours in excess of 24 per day.

All of this of course tarnishes our collective legal reputations. Absurd outcomes like this act as a sort of tragicomic reference point for all that is wrong with the legal profession.

http://abovethelaw.com/2013/09/lawyer-billed-29-hour-day-to-the-same-client-and-didnt-expect-to-get-caught/

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CSUN Grad At Center of KPMG Insider Trading Scandal

According to the Wall Street Journal, former KPMG audit partner, Scott London, received "on a couple of occasions" cash of $1,000-$2,000, some meals, and a discount on a watch from a unnamed golfing buddy. For this relatively modest consideration, Mr. London shared confidential and proprietary information of his audit clients, Herbalife and Sketchers USA, Inc. that was used by said golfing buddy to make some stock trades. Apparently a lot of stock trades. In so doing, London breached his fiduciary duties as the company auditor, violated virtually every material canon of professional ethics and committed criminal violations of the Securities Act, including breaches of insider trading laws. I suspect there is a lot more to the story, including, I suspect, a lot more in the way of additional payments or other consideration to London. It pains me every time I read of these major breakdowns of trust. The fact that he is an alumnus of CSUN's otherwise very excellent accounting program (and where I also teach) makes it all the more disappointing.

http://www.zerohedge.com/news/2013-04-09/meet-kpmg-partner-who-leaked-secret-client-data-highest-bidder

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SEC Rules on Social Media

The Securities and Exchange Commission on Tuesday saidcompanies may use social media to disseminate key information, so long as investors have been alerted about where to look for it.

http://blogs.wsj.com/law/2013/04/02/size-of-social-media-following-doesnt-matter-to-sec/

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K&L Gates Posts Detailed Reporting of Financial Performance

In a highly detailed public disclosure, K&L Gates reports 2012 financial performance. Zero debt, but year over year top-line and bottom-line look very flat.

http://www.klgates.com/files/Upload/2012_Firm_Financials.pdf

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