Blue Ribbon Team Named To Improve Corporate Audit Committees
The Securities and Exchange Commission, the New York Stock Exchange and the National Association of Securities Dealers have announced the names of the individuals who will serve on the "blue ribbon" panel created to make recommendations on strengthening the role of audit committees in overseeing the corporate financial reporting process.
The panel will be co-chaired by John C. Whitehead, former deputy Secretary of State and retired co-chairman and senior partner of Goldman, Sachs & Co. and Ira M. Millstein, senior partner of Weil Gotshal & Manges LLP and a noted corporate governance expert. The other panel members will be:
- John H. Biggs, chairman, president & CEO, TIAA-CREF
- Frank J. Borelli, senior vice president, CFO & director, Marsh & McLennan Companies
- Charles A. Bowsher, former Comptroller General of the U.S.
- Dennis D. Dammerman, senior vice president-Finance & CFO, General Electric Company
- Richard A. Grasso, chairman & CEO, New York Stock Exchange
- Philip A. Laskawy, chairman & CEO, Ernst & Young LLP
- James J. Schiro, CEO, PricewaterhouseCoopers
- William C. Steere, Jr., chairman & CEO, Pfizer
- Frank G. Zarb, chairman & CEO, National Association of Securities Dealers.
SEC Chairman Arthur Levitt said of the panel, "This top-notch group of corporate and industry leaders is well positioned to examine the workings of the corporate audit committee and to make concrete recommendations for its improvement. I thank each of these members for their time and commitment to this important undertaking."
This committee was created in response to recent concerns expressed by Levitt about the adequacy of the oversight of the audit process by independent corporate directors.
The committee will undertake an intensive study of the effectiveness of audit committees in discharging their oversight responsibilities and, within 90 days, make concrete recommendations for improvement. The panel's recommendations may include changes to listing standards with respect to the role and composition of audit committees, changes to the auditing standards with respect to how auditors and audit committees interact, new corporate disclosure requirements, and a formulation of "best practices."