My friend Mark Pincus makes a very smart and sensible suggestion regarding corporate fraud: If a company has to restate its financial statements, then the executives have to regorge back to the company the profits from any stock sales that that time.
The rule is not dissimilar to the short swing profit rule.
Much better than Sarbanes Oxley in that it punishes the guilty few heavily, rather than all the innocent.
See the write up here:
http://markpincus.blogspot.com/2005/03/will-sec-ever-get-serious-about-making.html
Mark Pincus on Sarbanes Oxley and corporate fraud
March 31, 2005
I’m a Zurich based investor. Since 1997, I’ve managed a privately offered investment fund known as the Aquamarine Fund.
I am also the author of a book titled The Education of a Value Investor, which was published in 2014.
As I wrote in my book, we are all a work in progress. This site documents my ongoing quest for “wealth, wisdom and enlightenment”.
I have created a /now page – inspired by Derek Sivers
I’m a Zurich based investor. Since 1997, I’ve managed a privately offered investment fund known as the Aquamarine Fund.
I am also the author of a book titled The Education of a Value Investor, which was published in 2014.
As I wrote in my book, we are all a work in progress. This site documents my ongoing quest for “wealth, wisdom and enlightenment”.
I have created a /now page – inspired by Derek Sivers
