Officials at state employee and teacher retirement funds say corporations must address financial disclosure, executive pay for performance, and board independence to restore investor confidence in 2003, according to a Corporate Governance Alliance survey. Some 70% of plan sponsors surveyed "believe a board with a separate CEO and chairman and composed of independent directors (besides the CEO) would be more effective watchdogs, the CGA said. Only 15 companies in the S&P 500 have independent and separate CEO and chairman positions.
Almost 50% of the respondents think "it would be useful to have a dotted-line (more formal) relationship between the CFO and the audit committee. Traditionally, the CEO and CFO have a very close relationship, according to the alliance.