IR pros see change following birth of SEC’s dot-com commission

NEW HAVEN, CT: Whether they result in increased self-regulation or a new SEC rule, the findings of the Garten Commission are likely to change the way IR pros do their jobs. That’s what many practitioners are saying about the panel, formed at the request of SEC chairman Arthur Levitt, to look into ways for valuating intangible assets in the New Economy.

NEW HAVEN, CT: Whether they result in increased self-regulation or a new SEC rule, the findings of the Garten Commission are likely to change the way IR pros do their jobs. That’s what many practitioners are saying about the panel, formed at the request of SEC chairman Arthur Levitt, to look into ways for valuating intangible assets in the New Economy.

NEW HAVEN, CT: Whether they result in increased self-regulation or

a new SEC rule, the findings of the Garten Commission are likely to

change the way IR pros do their jobs. That’s what many practitioners are

saying about the panel, formed at the request of SEC chairman Arthur

Levitt, to look into ways for valuating intangible assets in the New

Economy.



’You need to communicate the value of these intangibles, like

intellectual property, strategic relationships, new technology and

patents,’ said Leon Berman, SVP and head of Makovsky & Company’s IR

practice. ’It’s especially key with New Economy start-ups, where

sometimes there aren’t any hard assets.’



While the panel is said to prefer that New Economy companies adopt

guidelines on their own, the SEC may pass rules if they don’t.

Meanwhile, investors are growing impatient.



’More and more, investors are putting on the pressure for the payoff,’

said Basil Ford, VP of IR at the William Mills Agency. ’So the IR pro’s

challenge is to show how these intangibles are going to lead to a payoff

- and for a lot of them, it’s just not going to work.’



The 15-member panel is led by Yale School of Management dean Jeffrey

Garten and includes Enron CEO Kenneth Lay, among others. It has met

several times since May, and a source close to one member said it plans

to issue a report to Levitt by the end of this year.



Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in