Putting Money Where The Mouth Is

Call it a worthwhile investment.Nancy Pelosi, the incoming speaker of theHouse of Representatives, says she wants to see changes in the Sarbanes-Oxley Act, and so do venture capitalists. In fact, according toBloomberg News, for months they have been lobbying anyone in Washington who would listen – the White House, lawmakers and regulators -- that the high cost of complying with SOX is encouraging companies to launch initial public offering outside the U.S. According to aPricewaterhouseCooperssurvey, two out of three of companies considering IPOS says costs associated with Sarbanes-Oxley are a potential reason for not listing. Just to make sure Pelosi sticks to her guns, saysBloomberg News, partners at prestigious VC firmKleiner Perkins Caufield & Byerscontributed handsomely to the California liberal’s campaign – more money than theAFL-CIO,通常是一个维em’s best friend. But rest assured, the campaign money was no more than either advance appreciation or an insurance policy. “Pelosi has stated several times that there needs to be changes” to SOX, especially for smaller, emerging growth companies,”Mark Heesen, president of theNational Venture Capital Association, toldBloomberg News. The timing for change seems perfect, saysRobert GradyofThe Carlyle Group, a former aide to President George the First and chairman of the NVCA, as the crafters of SOX, Sen.Paul Sarbanes(D-Md.) and Rep.Michael Oxley(R-Ohio), are hanging up their legislative boots at the end of the year, as “there is a certain reluctance among members of Congress to offend them while they are here.”