from cNet News
The Sarbanes-Oxley Act might be meant to guard against massive white-collar scandals, but the resignation of a high-profile tech veteran suggests the law may also be restricting efficiency atop Silicon Valley’s corporate ladder.
Earlier this month, venture capitalist and Netscape founder Jim Clark announced his departure from the board of directors at photo-printing site Shutterfly, where he served as chairman. In his resignation letter, he cited “the constraints imposed by Sarbanes-Oxley on (his) having any significant role on the board” as one of the primary reasons for departure.
It appears that Clark felt Sarbanes-Oxley–commonly known as SOX–had built an insurmountable wall between his status as a major shareholder and investor at Shutterfly, and his role on the board of directors.
“(Sarbanes-Oxley) dictates that I not Chair any committee due to the size of my holdings, not be on the compensation committee because of the loan I once made to the company, (and) not be on the governance committee,” he continued in his resignation letter. “It even dictates that some other board member must carry out the perfunctory duties of the Chairman.”