March 31, 2006
Both as a director of a small cap company (Pemco Aviation Group Inc -- PAGI) and Managing Partner of a relatively large investment firm, I strongly endorse the samall company exemptions from SOX Section 404 under consideration. Many small companies are struggling to maintain shareholder value and the additional burdens of 404 compliance (approximately $1 million a year in the case of PAGI) could well make the difference between success and failure. As a professional investor and as a director, I see little benefit to be gained from imposing further SOX compliance burdens on small companies.