Table: Tightening the Screws
Here's what Treasury Secretary O'Neill is considering to make company directors and officers more accountable:
Executives who negligently allow investors to be misled could be held responsible. Currently, only those who do so intentionally or recklessly are liable.
Companies would no longer be able to fully indemnify directors and officers against fraud lawsuits. Execs may have to cover the first $1 million, or a year's salary.
CEOs and their boards would be required to certify that they have told investors everything they need to know about a company's financial prospects.