The Change Mariner

Vinod Khosla Leaves Juniper Board, Blames Sarbanes-Oxley

San Jose Mercury News:

Vinod Khosla, one of the Bay Area's premier venture capitalists, said Monday that onerous securities regulations had pushed him to step down as a board member of Juniper Networks.

He said a host of recent regulations -- introduced by the Securities and Exchange Commission, Nasdaq and the Sarbanes-Oxley Act of 2002 -- are important but have combined to create burdens on board members, with unintended consequences.

Khosla's move raises the question of whether Silicon Valley will see a wave of other venture capitalists making similar moves.

Reactions by other venture capitalists to increased regulations are mixed. Some, such as Promod Haque of Norwest Venture Partners, believe Khosla's move is being joined by others.

"It's so damned time-consuming,'' Haque said of the new regulations. "All of us have been reducing our board positions in some form.''

Posted by Bob King at April 13, 2004 05:01 PM | TrackBack
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