With more than 2200 companies possibly engaged in backdating, scores of shareholder derivative suits are in the making.
The scandal has resulted in high executive churn, with more than 30 senior executives or directors at 16 companies having resigned or been fired.
In addition, shareholders are rocking the boat on executive compensation as we approach proxy season.
As a result, the clean CEO is high demand. Appointment of lawyers-turned-CEOs at Home Depot this month, Pfizer, and Marsh & McLennan, show the importance boards are placing on the clean CEO.
Christian & Timbers' named the "Clean CEO" as a 2007 hot job in their 13th annual list of executive hot jobs.
Lawyers are often in demand for the top spot when companies find their executive in regulatory hot water.
"Boards will vet the replacement CEO carefully – wanting only the squeaky clean CEO whose closet is free of options and compensation skeletons," noted Stephen Mader, corporate governance expert and Vice Chairman of executive search firm Christian & Timbers.
Will this really solve the problem or will lawyers be better at maneuvering around regulations for their own benefit?