SOURCE: The Corporate Library

March 12, 2008 14:05 ET

New Director Compensation Tables Incorrect in Over Five Percent of Company Filings

PORTLAND, ME--(Marketwire - March 12, 2008) - In a study of more than 2,000 companies, The Corporate Library found that 126 firms had failed to correctly total the compensation of one or more directors. Differences ranged from one dollar to more than $125,000. In some cases only one director was involved; in others, mistakes affected the whole board. Although rounding numbers to the nearest whole dollar figure could account for a few of the errors, missing columns, ignoring particular data points and transposing figures accounted for most of the addition problems.

Only two of the 126 companies -- Atlas Worldwide Holdings and Aspect Medical Systems -- ever corrected their errors and placed filings with the SEC that provided corrected tables.

"Why, in an age when you can key numbers into a spreadsheet and use a simple formula to add them with perfect accuracy, did 126 companies have total compensation columns that did not accurately reflect the sum of its table components?" asked the report's author, Greg Ruel, Research Associate at The Corporate Library. "How could such basic addition mistakes go unnoticed and uncorrected?"

The figures in the study indicate a need for improved due diligence and a higher level of scrutiny of board financial disclosures to validate accuracy.

This latest analyst alert is the most recent in The Corporate Library's 2008 Proxy Season Foresights series, covering the key topics of most relevance to investors, corporations, professional services companies and the governance community.

The eight-page report is available for $75 from The Corporate Library's online store at www.thecorporatelibrary.com.

About The Corporate Library

The Corporate Library is an independent research firm focused on the U.S. and Canadian public market which offers corporate governance information products, research services and data products. It produces the definitive ratings of U.S. corporate boards of directors, allowing businesses that subscribe to the service to evaluate governance as an element of investment and other risk. Additional information can be found at www.thecorporatelibrary.com.

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