Governance Reform Proposals from an Institutional Investor Perspective, and Insights from the IRS on Key Tax Issues

Risk oversight, corporate governance reform, and tax compliance are the central issues discussed in this recent KPMG/NACD Audit Committee Webcast. The webcast - co-sponsored by KPMG's Audit Committee Institute (ACI) and the National Association of Corporate Directors (NACD) - features commentary on governance reform proposals from an institutional investor's perspective by Ann Yerger, Executive Director of the Council of Institutional Investors. Also featured are as insights on key tax developments by Steven T. Miller, Commissioner of the IRS Large and Mid-size Business Division.

As part of the webcast, participants were polled on a number of key issues including:

• Risk committees - about one third of the survey respondents said their board is considering the formation of a "risk committee".
• Risk oversight responsibilities - 28 percent said they are either not satisfied or only somewhat satisfied that their board has clearly defined risk oversight responsibilities
• Separation of CEO/chairman roles - 75 percent said separating the roles of CEO and chairman would improve the effectiveness of board oversight.
• Updates on the company's tax risks - one third said the company's tax director provides updates to the audit committee less frequently than annually, or not at all.