Monday, May 22, 2006
H.B. Fuller lauds Sarbanes-Oxley
Here's an interesting case study of a company that says its a stronger company after complying with SOX.
Many businesses have complained long and loudly that the costs of complying with the Sarbanes-Oxley Act exceed the benefits.
Might the reverse be true for their shareholders? Could these investors be faring better because of the stronger controls that the act requires businesses to put in place?
That's how it looks to the folks who run H.B. Fuller, theVadnaisHeights-basedadhesivesandspecialtychemicalsmaker.Theirshareholdersmightagree.And a study released early this month by the Lord & Benoit research and compliance firm suggests similar situations could prevail at many other publicly held companies.
Since January 2005, when Fuller first disclosed accounting irregularities in its Chilean operations, the company's stock has risen about 80 percent.
John Feenan, Fuller's chief financial officer, says the controls it installed to comply with the act helped the company deal with the trouble in Chile.
"At the end of the day, Sarbanes has been good for us," says Feenan. "It has definitely made us a stronger and better company."
posted by Brian Moran @ 9:01 AM