The Definitive Guide on “Audit Committee Financial Experts”

Nearly every company discloses that it has an audit committee financial expert under Item 407(d)(5) of Regulation S-K – in their proxy – rather than providing the embarrassing disclosure of why it doesn’t.

When a company discloses that it does have one, it’s required in its proxy statement to identify the name of the person who is – and whether they are considered independent under the listing standards for the stock exchange on which the company’s stock is listed.

Here are five things to know about ‘audit committee financial experts’:

• Qualification seems easy on paper
• But figuring out who qualifies isn’t always easy
• Deciding whether to disclose more than one
• Use questionnaire to conduct annual review
• Deference by other members to expert

For many more Vid-Guides dealing with corporate & securities law, corporate governance, E&S issues and more – particularly if you want to review any Vid-Guides referred to during this Vid-Guide – see the list of Vid-Guides spread throughout these categories:

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• Proxy Season
• Executive Pay
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• Sustainability/E&S
• Career Advice
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