GlobeSt.com EXCLUSIVE: Shareholder Cautiously Optimistic on Insignia Financial Governance Changes

NEW YORK CITY-Weeks after shareholders took Insignia Financial chief Andrew L. Farkas and the executive committee to task for certain compensation practices, the firm has filed corporate governance changes with the Securities & Exchange Commission. The filing was made on Wednesday, the date specified by the newly signed Sarbanes-Oxley Act as D-day for CEOs to guarantee the veracity of their financial statements. The filing came complete with that certification.

More to the point were a list of some 11 initiatives in the area of corporate governance, many if which are a direct response to specific charges made during the firm’s regular shareholder conference call. These included compensations for Farkas’ boat and airplane, political contributions and loans made to executives at below the cost of financing. Certain investments made by members of the executive committee in Insignia initiatives were also questioned during the call.

“We heard the shareholders and we listened to them,” an Insignia Financial spokesperson tells GlobeSt.com. “If we can accommodate their concerns where practical and within reason, we are going to do that.” He added that reviews of corporate governance were a constant process prior to the conference call and will continue to be so, making it clear that the changes were not based solely in the conference call conversation.