Root of the evil * President Bill Clinton and Congress in 1994 changed the tax laws to cap at $1 million the deduction corporations may take for executive compensation. * Performance or incentive-based forms of compensation, most notably stock options, however, were exempt from this cap (as they still are). * The result was a dramatic shift in executive compensation away from cash and toward stock options.SOX-What it meant ¢ For the first time in history, failure to comply with the certification and disclosure requirements can result in personal criminal liability i.e. steep fines and/or imprisonment. * Therefore compliance requirements of the Sarbanes-Oxley Act is critical from both corporate and personal standpoint.