One on One with Michael Oxley, Vice Chairman , NASDAQ
Thursday, March 15, 2007
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SUSIE GHARIB: There's a new face at the top of the NASDAQ. Former U.S. Congressman Michael Oxley was named vice chairman today. He'll work with NASDAQ Chairman Robert Greifeld on public policy issues for NASDAQ listed companies. The congressman is best known for the Sarbanes-Oxley Act that imposed new accounting standards on American businesses. When we talked this afternoon, I asked him what's his first assignment:
MICHAEL OXLEY, VICE CHAIRMAN, NASDAQ: Well, I'll be going on a listening tour for some of the listed companies throughout the country and talk to CFOs and CEOs about some of their issues, particularly as it relates to public policy and be reporting back to the board and to Bob Greifeld, the CEO.
GHARIB: Congressman, what kind of help do you think you can give CEOs?
OXLEY: Well, I think it is not so much the help I can give except first of all to hear them and also to create some public policy issues. I think it may depend on where the company is located, what sector they are from. But it is important, I think. There are a lot of issues out there like executive compensation and (INAUDIBLE) and consumer lending and some other issues that I think will -- they will bring up. And I hope that I have an opportunity then to help craft some of the public policy issues around those issues.
GHARIB: In the past NASDAQ's chairman Bob Greifeld has criticized the legislation that bears your name Sarbanes-Oxley saying that it makes it difficult for companies to do business. Is he going to change your mind or are you going to change his mine about that legislation?
OXLEY: Well, actually, we have a pretty good agreement. Bob has been quite vocal in saying that the basic precepts of Sarbanes-Oxley are good, based on transparency and accountability. What needs some work is Section 404 and the SEC and the PCOB with my blessing and Senator Sarbanes blessing are addressing some of those cost issues. And I think we'll have a good product by the time they finish hopefully in the next quarter or the third quarter of this year.
GHARIB: Many high profile CEOs were in Washington this week, meeting with Treasury Secretary Henry Paulson. And they were saying that Sarb-Ox is making American business less competitive. Do you think it is time to revise the law?
OXLEY: No, actually I think that in this case, as a matter of fact, the tenor of that was not to revise the law. Secretary Paulson was strongly supportive that the concept of Sarbanes-Oxley and the principles therein as well as most of the speakers and the participants. I think where the changes need to be made as is traditionally the case when you pass major legislation is at the regulatory level. That of course is what the SEC and the PCOB are proposing, particularly some really common sense solutions to the problem like moving the onus of the audit to the internal audit by redefining what a material weakness is, to really bring some common sense to that proposal. And we're confident that that is going to happen.
GHARIB: Congressman as you know, the NASDAQ is trying to expand its reach internationally. How you can help that effort?
OXLEY: Well, I have -- I'm a strong believer in international markets. I think we're clearly in a global, competitive marketplace. And NASDAQ because of their innovation and because of their entrepreneurial spirit is really well-positioned to be a major player in the global financial marketplace. And I have had some experience with that in visits to other countries and discussions with businesspeople as well as government officials in those countries. And I plan to be very aggressive in helping NASDAQ reach its goal of becoming the international marketplace and a real leader in the global financial services and exchange marketplace.
GHARIB: As you join NASDAQ now, how does it feel to be in corporate America after 25 years of working in government?
OXLEY: Well, it's different, of course. I'm only at it a few days. But I'm looking forward to it. I think it's a real challenge. I enjoyed my service in the Congress. And it was 25 good years, particularly the last few years when I chaired the financial services committee. But it was time to move on. And I was just honored that Bob and the board were kind enough to invite me to participate as a vice chairman.
GHARIB: Congressman Oxley, thank you so much and the best of luck to you.
OXLEY: Thank you very much. Appreciate it.
