![]() ![]() ![]() When SOX was enacted in 2002, I was three years into an 18-year run as a CEO in Kaiser Permanente, a multibillion-dollar healthcare organization. I can attest to the power this law wielded over American industry. And should the claims prove false in the future, these executives would be held directly (and criminally) accountable. ![]() To make the law enforceable, and to pierce the once-thick armor of plausible deniability that shielded executives from punishment in the past, SOX required CEOs and CFOs to sign audited financial statements, thereby forcing them to certify the accuracy of information. SOX changed that by introducing criminal punishments at the individual executive level, with fines of up to $5 million and-more important-imprisonment for up to 20 years. JAFFE/AFP via Getty Images AFP via Getty Images Bush signs HR 3763, better known as the Sarbanes-Oxley Act of 2002. ![]()
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