Measuring What Matters

There is a groundswell of interest in metrics that go beyond our traditional financial view of companies. Many organizations have done extensive work on frameworks for ESG metrics, non-financial metrics, or integrated reporting, each targeted at a range of stakeholders including customers, employees, policymakers and investors. The challenge we often hear is that companies work…

Changing the Timeline on Corporate Financial Reporting: SGX Scraps Quarterly Updates – Glass Lewis

he Singapore Exchange Limited (“SGX”) announced that it would change its reporting regimen to remove the requirement for quarterly earnings reporting to instead only require half-yearly reporting. The change provides for risk-based exceptions, which require certain companies to continue quarterly earnings reports if: A company received a disclaimer, adverse or qualified opinion from its auditor…

EY, Deloitte, KPMG fall short in audit quality

Underscoring our point in the previous post that the inadequacy of traditional financial disclosures is the reason for the interest in ESG/sustainability: Three of the big four consulting firms failed to do enough work to support their audit opinions on every important aspect of at least one client’s financial reports. The corporate regulator’s latest audit…

Accounting for Climate: The Next Frontier in ESG | S&P Global

As more and more companies and investors conclude that sustainable practices make for sustainable returns, the assessment of corporations’ environmental, social, and governance (ESG) footprints has moved from a simple measure of corporate responsibility to an investment proposition. While this general focus on ESG policies is undeniably beneficial, companies today are presented with the additional…

How an Agency You’ve Never Heard of Is Leaving the Economy at Risk

David Hilzenrath and Nicholas Trevino of the Project on Government Oversight have written a monumentally important investigative report on the failure of the agency set up following the Enron/WorldCom/MCI/HealthSouth and other accounting scandals to take exactly the actions it was designed for. There is a long Washington tradition of capture of regulatory agencies by industry,…

Climate Change Disclosures–More and Better

For more than 20 years, large companies have been ramping up the depth and breadth of their disclosure on GHG emissions. At the same time, the amount of forward-looking financial information on climate risks and the opportunities being provided to investors has been patchy at best. But in the short time since July 2017, following…

Here’s one way to tell if a company is overpaying its CEO – MarketWatch

VEA Vice Chair Nell Minow is quoted in this article about use of non-standard financial reporting to inflate CEO compensation: U.S. companies that use nonstandard numbers to calculate executive compensation are overpaying their top managers, according to a new research report. The working paper, “High Non-GAAP Earnings Predict Abnormally High CEO Pay,” by Nicholas Guest…