Most life insurance company chief financial officers believe the Sarbanes-Oxley Act has improved external financial reporting, but about 90% say the expense of SOX compliance outweighs the gains in clarity.
Researchers at Towers Perrin Inc., Stamford, Conn., have reported that finding in a summary of results of an informal survey of life company CFOs.
The researchers also asked about use of "value-based" measures for financial reporting, executive compensation and management decisionmaking
The researchers found signs of increasing use of value-based measures in internal reporting and executive compensation performance measurement.
About 37% of CFOs now use embedded value techniques for executive compensation performance measurement, and 45% use embedded value techniques for internal reporting.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.