Laura M. Holm quoted in article “As Companies Reorganize Themselves, Compliance Concerns Demand Consideration”Compliance Week 10/14/15
Below is an excerpt:
Holm, a partner with Quarles & Brady, stresses the importance of driving culture through a Code of Conduct that uniformly applies to the parent company, any newly created entities, and existing businesses absorbed through an acquisition. Well-planned reorganizations and mergers start early, she says, on the work of ensuring that a new code reflected the needs of the combined company. "Even if the plan isn't approved, you want people thinking about culture," she says. "The Code of Conduct sets the culture."
A big part of that focus on culture falls onto the compliance function. Holm recommends that companies reevaluate its role before the reorganization and afterwards. "You want to think about ways of rewarding and supporting compliance," she says. "It doesn't show up in the numbers, but you need to show that compliance is important to your company. Having separate companies, if you do a spinoff, means you need to be even more focused on new risks and responsibilities."
Originally published in Compliance Week, October 8, 2015