Compensation issues aren't strictly in-scope from a Sarbanes-Oxley perspective, except perhaps when it comes to backdating of options. Of course, if the auditor were retained to give compensation advice, that would invoke the law! But conflicted compensation advice is hardly a non-issue. In the Sarbox era, boards have been more leery of even the appearance of conflicts. When it comes to compensation advice, Financial Week notes that more big companies are opting to hire independent compensation advisers instead of larger firms that consult on a broad range of issues. Safeway and Verizon are among those who have switched to independents. In cases where consultants that provide services in several areas are retained, companies seem to be disclosing more about their relationships. The article notes Time Warner, which in its proxy filing earlier this year offered a seven-paragraph description of the role of Towers Perrin.

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