Editor's page.

The euphoria in the credit markets that carried into the start of the summer had, by the beginning of August, essentially given way to a whole new feeling of skepticism. In our cover story, writer Paul Sweeney examines the end of "covenant-lite" and other features that lenders were forced to concede to only a few months ago. Recently, institutional investors have pulled back, forcing a number of pending buyout deals to break apart.

[ILLUSTRATION OMITTED]

International Financial Reporting Standards (IFRS) are making an impact, so much so that the U.S. Securities and Exchange Commission is asking U.S. filers to comment on reporting in IFRS or U.S. GAAP. To see how IFRS implementation plays out in the real world, Executive Editor Ellen M. Heffes and Cheryl Graziano of Financial Executives Research Foundation interviewed executives at three companies that have IFRS compliance programs in place where required in many reporting jurisdictions around the world.

The three are IBM Corp., Intel Corp. and Credit Suisse Group--all very large multinationals. Executives from the three have different perspectives on the change, but note that the groundwork for the shift needs to be carefully prepared internally and that auditing expertise around IFRS still needs to be developed.

Company executives and their attorneys, be they outside or in-house counsels, have a right to be concerned when privileged information is divulged to investigators. That seems to be happening with some regularity, however, writes attorney Marty Steinberg. He explains how a "culture of waiver" has developed and what companies can do to combat it. (This is more than just a perception. Legislation with broad bipartisan support is pending in Congress to bar the Justice Department from pressuring corporations to waive attorney-client privilege in return for more lenient treatment by government prosecutors in criminal cases.)

A famous rock star once sang, "The West Is the Best." That's certainly true if you're a young and unproven company looking for venture funding. Interviews with a number of people in and close to the venture business reveal a consensus view: As a rule, West Coast firms remain less risk-averse and more willing to take a chance on an idea than their counterparts in the East.

The increasingly wireless and mobile nature of work has turned on its head the whole idea of giving all employees a desk and managing real estate by in-office headcount. Design, amenities and flexibility are more important than ever, write two consultants with Ernst & Young. For companies, this means a need to respond to work/life balance trends as well as juggle the need for space based on demand--and less demand could result in considerable savings.

The old ways of setting performance pay targets are over, writes Matt Turner of compensation consultant Pearl Meyer & Partners. Heightened shareholder activism, increased disclosure requirements and an overall market skepticism require that companies embrace a more rigorous, shareholder-focused approach to ensuring that both performance measures and targets are appropriate and effective, he writes.

It's clear that some investors look at unresolved environmental liabilities as a cloud hanging over public companies, and discount their stock as a result, writes Houston environmental attorney C. Gregory Rogers. He analyzes that impact and offers suggestions about how efforts to reduce this liability can result in higher valuations and, over time, a lower cost of capital.