But he also suggested a "limited number of made-to-measure rules might...be necessary, so markets can play their disciplining role in an efficient way."
"We need to converge on common principles and understandings," he reportedly said in his Monday speech. "Not an identical approach but understanding where different approaches can be consistent."
The next step for Ahold could be an audience with the Securities and Exchange Commission. "If any company makes a restatement of earnings, the Commission staff is going to look at it," Herb Perone, a commission spokesman, told Reuters.
He wouldn't come out and say whether Ahold would be specifically targeted by the SEC. But Perone told Reuters that an issuer of securities "listed in the U.S. falls under the jurisdiction of the SEC."
Joseph Carcello, a professor of accounting at the University of Tennessee, told the wire service: "Chances are somewhere between very good and overwhelming that the SEC will take a good look at the Ahold accounting issue."
This is a long way from being over.
Promotion Time for Two CFOs
Continuing a recent trend, the chief financial officers at two well-known companies have been promoted to more important positions.
Disk-drive maker Maxtor Corp. named Paul Tufano as president and chief executive officer. He will also join the board of directors.
Tufano succeeds Michael Cannon, who resigned in January to become chief executive of Solectron Corp., a contract manufacturer.
Tufano joined Maxtor in 1996 as chief financial officer. Since 2001, he has also served as the company's chief operating officer, responsible for worldwide operations, including manufacturing.
Prior to joining Maxtor, Tufano, who has an economics degree from St. John's University and an MBA from Columbia University, spent 17 years at IBM in a variety of management positions, primarily in the storage-systems division.
Meanwhile, Cendant Corp. said CFO Kevin Sheehan will take on the additional responsibility of heading up the company's vehicle and financial-services divisions, succeeding John W. Chidsey, who resigned as chairman and CEO to pursue opportunities outside of Cendant.
The vehicle-services division includes the Cendant car rental group (Avis and Budget), PHH Arval, and Wright Express.
"Considering Kevin's previous role as president of Avis, he is the perfect choice to manage Cendant's vehicle services division and spearhead the integration of Budget within the company's newly formed car rental group," said Cendant's chairman, president, and CEO, Henry R. Silverman, in a statement.
Dell Opposes SEC Proposal
Dell Computer Corp. fired off a letter to the SEC opposing parts of a proposed rule that would set limits on the manner, timing, price, and volume conditions for corporate stock buybacks.
Dell management reportedly said in a February 18 letter to the SEC that, although it supports more disclosure on share buybacks, it believes the rule could create confusion.
Among the SEC's proposals, companies would be required to disclose share buybacks more frequently, perhaps within 10 days of the transaction or on a monthly basis. Another proposal would require companies to reveal the identity of the broker-dealers that the company uses to make purchases.
Dell reportedly asserted monthly or daily reporting of share repurchase activity "would not provide meaningful information to investors."
The letter, which was sent by Dell's accountant, also said the company's management believes that the disclosure of share transactions that exceed a certain size would provide incomplete and potentially misleading information, according to published accounts.
Dell discloses its share repurchase activity on a quarterly basis.
The computer company's management also insisted that identifying the brokers used for a share repurchase program is "not meaningful" to investors and could create an "undue burden" on the companies that issue stock.
Emerson Electric is one of a number of other companies that have raised similar concerns, according to Reuters.
The SEC's comment period ended on February 18.
Short Takes
- Chief information officers anticipate a slowdown in the hiring of information technology professionals in the second quarter of 2003, according to the Robert Half Technology IT Hiring Index.
Nine percent of executives surveyed plan to expand their IT departments in the coming months, and 5 percent anticipate staff cutbacks. The net 4 percent hiring increase compares with a net 8 percent increase forecast last quarter.
The majority of executives—86 percent—plan no change in hiring activity. The poll includes responses from more than 1,400 CIOs from U.S. companies with 100 or more employees.
- Several middle-level managers at Qwest Communications International Inc. are expected to be indicted as early as Tuesday for their role in the company's accounting problems, according to Reuters, citing sources familiar with the situation.
Fewer than five mid-level Qwest managers are expected to face indictment this week, said the wire service, citing one source familiar with the U.S. Attorney's investigation, who spoke on condition of anonymity.
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