SOX Center

While Sarbanes-Oxley Act compliance costs decreased overall in 2006, the out-of-pocket costs associated with compliance rose from 2005 to 2006, according to a study planned for release on Thursday.

Foley & Lardner’s fifth annual study measuring the financial impact of Sarbanes-Oxley on public companies finds that the cost of audit fees, board compensation, and legal fees continue to rise, despite an overall plateau in compliance costs that companies tend to see following initial implementation of Section 404 financial controls.

The burden of compliance is prompting an increasing number of respondents at the 93 public companies surveyed to consider going private or selling the company. This year, 23% of those answering the survey said they’re considering transactions to take their company private, 16% said selling their company was a possibility, and 14% said they were considering a merger.

esm.com: Sarbanes-Oxley drives away IPOs