The relationship between management and boards of directors at U.S. multinational companies has been changed dramatically through an array of corporate governance initiatives begun in response to corporate scandals, the Sarbanes-Oxley Act, and other requirements. According to the PricewaterhouseCoopers Management Barometer:
88% of senior executives report that directors at their company are expected to have more input on a variety of issues.
73% say their board will be more vocal on risk identification and risk management.
72% say their company has established a "whistleblower" complaint process, as required by Sarbanes-Oxley, even though this provision is not yet in effect. Five per cent of these report an increase in the number of complaints received and addressed by the audit committee.
64% report that their audit committee reviews the company's 10-Q prior to filing with the SEC.
63% have made changes or improvements in the skill sets of their audit committee.
57% of audit committees and 47% of boards have performed a self-assessment in the past 12 months.
"Boards and audit committees at large corporations have responded actively to the call for change and have accomplished a lot," says Garrett Stauffer, of PricewaterhouseCoopers' U.S.