Top US retail executives have slammed an increasing corporate governance burden as a ‘lawyers’ charter’.

Directives enshrined in the Sarbanes-Oxley Act 2002 have been designed to avoid future corporate scandals, such as Enron and WorldCom. However, it has also led to meticulous and lengthy meetings with lawyers and auditors.

Speaking at the Retail Industry Leaders Association 2004 Annual Leaders Exchange in Dallas, Texas, Best Buy vice-chairman and chief executive Brad Anderson said: ‘By staying in the confines of the past, (executives) could easily miss opportunities of the future. It may have gone, and it probably has gone, too far.

‘There clearly were leaders that needed the discipline. On the other hand, I think it’s engendering a kind of conservatism.’

Alan Rosskamm, chairman and chief executive of US$1.6 billion (£891 million) clothing retailer JoAnn Stores, said: ‘I’m offended that what used to be a one-day board meeting has turned into two days. I hope some of this tedious and non-productive effort will one day be a distant memory.’

He warned: ‘This is a lawyers’ charter. It’s not going to fade away. The lawyers won’t let it fade away.’

Brian Devine, chairman and founder of pet supplies retailer Petco, suggested that changes were possible and necessary. ‘I think they have the opportunity to make administrative changes, which I think will provide some leeway in the long term,’ he said.

Board executives could face jail if they fail to meet the provisions of the Act. A November 15 deadline for compliance has been set.

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