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“Ours should not be a ‘gotcha’ game” — SEC Chair Atkins To Change Enforcement Practices- At the 25th Annual A.A. Sommer, Jr. Lecture at Fordham University on October 7, 2025, SEC Chairman Paul Atkins outlined a vision for reforming the agency’s enforcement practices, with a focus on enhancing fairness, transparency, and procedural rigor. Central to Atkins’ remarks was the Wells process, a longstanding mechanism through which SEC enforcement staff notify potential respondents of recommended charges. Atkins emphasized that Wells submissions, responses from those facing potential enforcement, are not mere formalities. While emphasizing the role of Wells submissions in ensuring the staff has accurate and complete information before proceeding, Atkins said, “They also provide the Commission with a different, and potentially convincing view of the facts and law concerning the matter,” adding, “In my 35 years in and around the SEC, I can definitively say that Wells submissions can and do change the trajectory of enforcement actions.” To strengthen due process, Atkins announced that enforcement staff will now provide at least four weeks for Wells submissions and must share sufficient evidentiary details, such as transcripts and key documents, while protecting whistleblower identities. He also encouraged early engagement to avoid resource-intensive investigations based on flawed premises. Atkins also reaffirmed his September directive to restore the SEC’s prior practice of simultaneously considering settlement offers and related waiver requests. This tandem approach, he argued, prevents respondents from settling enforcement actions only to later face denial of critical waivers. Quality over Quantity Enforcements While praising the Enforcement Division’s role in combating fraud and manipulation, Atkins emphasized that, “Ours should not be a ‘gotcha’ game” and cautioned against incentivizing enforcement staff solely for bringing cases, arguing that such metrics distort judgment and encourage overreach. “You get what you measure,” Atkins noted, urging a shift toward rewarding discernment and legal fidelity. IPO Markets Two days later, while speaking at the John L. Weinberg Center for Corporate Governance’s 25th Anniversary Gala, Atkins cited the steep decline in exchange-listed companies—from a peak of 7,800 in 2007 to roughly 4,700 today. “Taking a company public is no longer so ‘cool’ as it once was,” he remarked, pledging to “Make IPOs Great Again” through a three-pillar strategy: simplifying disclosure rules, de-politicizing shareholder meetings, and reforming securities litigation to curb frivolous lawsuits. Atkins warned that the burdens of public company status—regulatory complexity, shareholder activism, and litigation risk—have eroded U.S. competitiveness and diverted capital formation to private markets and foreign jurisdictions. “This trend is not inevitable or irreversible,” he said, calling on market participants to recommit to the principles that once made American capital markets the global benchmark. In addition, Atkins offered his views on shareholder proposal modernization, securities litigation reform and fee shifting. Atkins’ remarks at both events signal a broader philosophical shift at the SEC—one that seeks to balance investor protection with market dynamism, and enforcement rigor with procedural integrity. “We must ensure that the American public capital markets remain the envy of the world through growth, vibrancy, innovation and nimbleness,” he concluded. To read his comments in full, please see: https://www.sec.gov/newsroom/speeches-statements/atkins-2025-simultaneous-consideration-settlement NY, LA and SF Lead the Pack CFO Salaries Climb Chief Financial Officers are poised to see pay increases in 2026, with those seeking jobs in Los Angeles, San Francisco and New York expected to command the highest CFO salaries nationwide, according to the newly released 2026 Salary Guide from human resource consulting firm Robert Half. The report highlights that these top-tier markets offer the most lucrative compensation packages for CFOs, with starting salaries exceeding $420,000 for those with many years of experience. Nationwide, outside those hot areas, CFOs with many years of experience are expected to command up to $321,750. Those with moderate experience could earn up to $269,750 while entry-level CFOs may start at around $195,500, according to the Salary Guide. Overall, other finance and accounting salaries are expected to grow 2.1%, outpacing the 1.8% average increase across other sectors such as technology, legal, and HR. Despite economic headwinds and a cooling labor market, 84% of companies surveyed said they are prepared to offer higher salaries to candidates with in-demand skills. To view Robert Half’s 2026 Salary Guide, please see: https://www.multivu.com/robert-half/9211552-en-robert-half-2026-salary-guide The Jock Tax NFL Season Opener in Brazil: Chiefs Lose, but Players Win Tax Break Even before the Kansas City Chiefs faced the Los Angeles Chargers in São Paulo Brazil, California was already tallying a loss—$287,000 in forgone income tax revenue. According to the Tax Foundation, the NFL’s international expansion means California missed out on taxing Chiefs players for what would have been a nominal Chargers home game. Brazil levies a flat 15% tax on nonresidents’ income earned within its borders. While Chiefs players will owe an estimated $1.04 million to Brazil, they’ll receive a federal tax credit for that amount, resulting in no net increase in tax liability. Missouri, the Chiefs’ home state, will still collect about $175,000 in taxes for those duty days. Had the game been played in Los Angeles, California’s higher tax rates would have cost Chiefs players significantly more. Star quarterback Patrick Mahomes, for instance, would owe roughly $55,000 to California for three duty days, compared to just under $20,000 to Missouri—leaving him $35,000 poorer for the privilege of playing in the Golden State. The Tax Foundation notes that “jock taxes” are calculated using duty days, with NFL players typically logging about 200 per season. While athletes face complex multi-state filings, the same rules apply to everyday business travelers, often triggering tax obligations after just one day in another state. The Chiefs may have lost on the field, but by playing abroad, they’ve scored a financial touchdown. To read the Tax Foundation article: https://taxfoundation.org/blog/football-players-nonresident-income-tax/ |
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