Congress: Public Companies Need To Get Serious About Cybersecurity

As businesses of all sizes increase spending on cybersecurity – projected to top $124 billion this year – a bipartisan group of lawmakers in Congress wants public companies to go one step further: Install a cyber expert on their boards of directors.

The Cybersecurity Disclosure Act has been introduced several times in recent years, but now it's gaining traction on Capitol Hill. The House Financial Services Committee approved an amended version of the bill on Dec. 10. Introduced by Rep. Jim Himes, D-Conn., the bill won committee approval on a party-line vote, with Democrats supporting it and all Republicans opposed.

The measure calls on the Securities and Exchange Commission (SEC) to issue rules requiring public companies to disclose in annual reports or proxy statements whether board members have cybersecurity "expertise." If no board member has experience or expertise in cybersecurity, the bill would require the company to describe steps it took to recruit