Too Much Control of Internal Control?
There appears to be a disconnect in the way many companies are approaching their compliance with Sarbox 404, which governs the assessment and attestation of internal financial controls.

On the one hand, most companies seem prepared to implement the provision, which requires that annual reports include a management assessment of the effectiveness of a company's internal controls and an attestation of the adequacy of the controls by the company's independent auditor. In a recent survey of nearly 400 tax executives on their company's compliance with Section 404, 89 percent said they've begun planning or implementing processes and controls.

Yet 85 percent of the respondents to the survey, conducted by Tax Executives Institute (TEI), said their companies hadn't allotted any funds or resources toward those initiatives. "While it's reassuring that most companies are already working toward compliance, there is a bit of a disconnect in having only 13 percent reporting any resources allocated to it, considering the industry generally agrees that compliance is likely to run a substantial tab," said Timothy McCormally, TEI's executive director.

Chewing on a New Title at Wrigley's
Ron Waters, CFO and senior vice president of the William Wrigley Jr. Company, was promoted to the new post of chief operating officer.

He will have oversight of worldwide strategy, new business, and supply chain, as well as have more direct involvement in the chewing gum maker's operations across its American, European, Asian, and Pacific management regions.

As a result of this personnel move, Reuben Gamoran was named CFO. He was previously vice president controller. He has been with the Wrigley Co. since 1985.

In other CFO moves, McDonald's named Chris Cole senior vice president and finance chief of McDonald's U.S.A. The 24-year McDonald's veteran was most recently financial controller for McDonald's central division.

Robert Bahlman, senior vice president, CFO and controller of Midwest Express Holdings resigned, effective mid-February 2004. Bahlman, who's staying on to ensure a smooth year-end closing, has been with the airline since 1988 and has served as its CFO since 1996. The company has launched a national search for a replacement.

Short Takes

• Drugmaker Wyeth said it will offer $850 million of convertible debentures and post charges of $120 million to $150 million resulting from the redemption of its $1 billion of 7.90 percent senior notes due 2005.
  
  

• Telefonos de Mexico filed a shelf registration to sell up to $2 billion worth of debt over time. Company executives plan to use the proceeds for general corporate purposes that include funding working capital, repaying debt, and paying out capital expenditures.
  
  

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