Wesley Clark on Corporations NATO General; Democratic Candidate for President

Independent corporate boards needed for transparency

CLARK: I think Sarbanes-Oxley is a step in the right direction. I think we need to continue to emphasize independent corporate boards. That’s the key. Put the corporate governance in place, independent, put the responsibility of the board to the shareholders, not just to the CEO and that will start the ball moving in the right direction.

Q: Do you have anything more specific about what you would do?

CLARK: I’m out there on the cutting edge in five different companies, and I can tell you that Sarbanes-Oxley is tough, it’s difficult and companies are working through it. They are working on revenue recognition. They are working on transparency of options so everybody knows what the full diluted value is. These rules are in place, but they’ve got to be implemented. I think the one additional thing that needs to be looked at is more emphasis on the independence of the boards of directors.