NACD President and CEO Ken Daly Testifies Before Congress on Improving Dodd-Frank's Whistleblower Protections

House Financial Services' Capital Markets and Government Sponsored Enterprises Subcommittee Hears NACD Concerns

News provided by

National Association of Corporate Directors

May 12, 2011, 02:47 ET

WASHINGTON, May 12, 2011 /PRNewswire/ -- As Congress continues its debate on how to create positive job growth and strengthen our economy, National Association of Corporate Directors (NACD) President and CEO Ken Daly today testified before the House Financial Services' Capital Markets and Government Sponsored Enterprises Subcommittee on the impact of whistleblower bounty provisions in the Dodd-Frank Act, signed into law last year.

"On behalf of NACD's 11,000 members -- men and women who oversee millions of American jobs -- I was honored to discuss this critical issue with Members of Congress, and to provide our thoughts on how to help fix these flawed provisions," said Mr. Daly. "NACD commends Rep. Garrett for advancing the discussion on this critical issue, and supports Rep. Grimm's legislation to correct some of, but not all of, the problematic whistleblower provisions while ensuring exemplary board leadership by directors across the country."

Less than a year after the Dodd-Frank Act passed and was signed into law by President Obama, implementation of the legislation is presenting significant challenges and unintended consequences to individuals and companies across the nation. Yesterday's hearing provided a forum for these companies to express their concerns and review legislative fixes to the whistleblower bounty provisions included in the Act.

Mr. Daly's testimony enumerated the unintended consequences that may result from the proposed SEC whistleblower regulations. The main focus of his testimony was to recommend deferral of the proposed regulations until further study can determine the effectiveness of the provisions that already exist in the Sarbanes-Oxley Act.

Under previous rules, the SEC could choose to reward whistleblowers, but was not required to provide monetary compensation. Rep. Michael Grimm (R-NY) has drafted legislation to amend Dodd-Frank, and correct some of the flawed provisions while ensuring good corporate governance nationwide.

To read Mr. Daly's full testimony, please visit http://www.nacdonline.org/Resources/IssuesDetail.cfm?ItemNumber=3572.

About NACD

The National Association of Corporate Directors (NACD) is the only membership organization delivering the information and insights that corporate board members need to confidently confront complex business challenges and enhance shareowner value. With more than 11,000 members, NACD advances exemplary board leadership. NACD is focused on creating more effective and efficient boards through director-led education and peer forums to share ideas and leading practices based on more than 30 years of primary research. Fostering collaboration among directors and governance stakeholders, NACD is shaping the future of board leadership. To learn more about NACD, visit NACDonline.org. To join, please contact Kelly Dodd at [email protected] or 202-380-1891.

Contact:
Henry Stoever, Director of Marketing
National Association of Corporate Directors
202-775-0509

SOURCE National Association of Corporate Directors