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MARSHALL, Mich., July 7, 2003.—Sid Cato, who monitors the world's annual reports full time here, said few if any interviews—by daily newspapers or weekly magazines—emanate from other than the East Coast.
"Granted, some come from Midwest publications—Chicago, for instance, or Ohio. But most are from Pennsylvania, New Jersey, New York or Washington." The former corporate officer and journalist has produced, monthly since September 1983, his Newsletter on Annual Reports. He said interviewers ask if the newly enacted Sarbanes-Oxley Act (SOx, in the current vernacular) has had a positive effort on the 2002 crop of reports—that is, "has resulted in fuller disclosure, greater rectitude." His answer: "Not even close." He said honesty in 2002 reports among corporate chieftains stands at 86.3%, "if, granted, a 7% year-to-year improvement." (Cato said he perceived honesty among 80.3% of 2001 reports.) "Fuller disclosure hasn't materialized—on the contrary. By my standards, sleaze abounds. Never have so many obfuscated so much." |